Approaching 'Samcheonpi' Deadline... Samsung Electronics Nears 80,000 Won Mark

by Hwang Junho

Published 22 Dec.2021 15:46(KST)

Approaching 'Samcheonpi' Deadline... Samsung Electronics Nears 80,000 Won Mark

[Asia Economy Reporter Junho Hwang] On the 22nd, the KOSPI maintained its upward trend and closed higher on news that economic lockdowns due to the COVID-19 variant Omicron would not be easily implemented. Expectations grew for the KOSPI index to surpass 3000 and Samsung Electronics' stock price to break 80,000 KRW per share again, but the momentum did not hold.

On the 22nd, the KOSPI closed at 2,984.48, up 9.54 points (0.32%) from the previous trading day. The index closed higher as net buying by foreign investors and institutional investors continued. Foreigners and institutions net bought 251 billion KRW and 152.3 billion KRW, respectively. Individuals took advantage of a rare profit-taking opportunity and net sold 415.6 billion KRW.

Among all stocks, 486 rose while 357 fell. Among the top market capitalization stocks, semiconductor stocks led the gains. Samsung Electronics closed at 79,400 KRW, up 1.66% from the previous closing price, bringing it close to 80,000 KRW per share. SK Hynix also closed up 2.01% at 127,000 KRW. Semiconductor stocks continued their upward trend as foreign investors kept net buying amid positive views on the semiconductor industry, similar to the previous day. However, Samsung Biologics (down 3.01%) and LG Chem (down 2.65%) showed a downward trend.

Following the rise in semiconductor stocks, the electrical and electronics sector also rose 1.29%. Semiconductor-related stocks Daeduck Electronics rose 9.35%, and Korea Circuit increased 8.05%. Besides the electrical and electronics sector, transportation equipment (up 0.84%), textiles and apparel (up 0.55%), and services (up 0.54%) also showed gains.

Seosangyoung, a researcher at Mirae Asset Securities, analyzed, "The U.S. stock market's strong performance and easing concerns about Omicron-related lockdowns led to the market closing higher today. However, uncertainty remains over the U.S. social spending bill, limiting the index's gains."

On the 21st, the KOSPI opened at 2,981.67, up 18.67 points (0.63%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul. The won-dollar exchange rate started at 1,189.8 won, down 1.0 won from the previous trading day. Photo by Hyunmin Kim kimhyun81@

The KOSDAQ also closed at 1,000.14, up 3.54 points (0.36%). Individuals and foreigners net sold 155.4 billion KRW and 10.1 billion KRW, respectively, while institutions supported the index with net buying of 176.4 billion KRW.

Among all stocks, 730 rose and 608 fell. Among the top market capitalization stocks, Wemade jumped 6.14%, maintaining its early session gains until close. However, EcoPro BM (up 0.06%) and Pearl Abyss (up 0.71%) failed to sustain early gains and closed lower. By sector, digital (up 2.54%), entertainment (up 1.87%), and telecommunications services (up 1.35%) rose.

Lee Kyungmin, a researcher at Daishin Securities, stated, "U.S. President Joe Biden announced that there would be no lockdown measures like those in March last year, and the UK also stated it has no plans to strengthen quarantine measures, which positively affected investor sentiment." However, he added, "With a lack of clear upward momentum and the dollar/won exchange rate still holding around 1,190 KRW, the KOSPI gave back intraday gains."

On the day, the dollar/won exchange rate closed at 1,192.00 KRW, down 0.08% from the previous day.