Samsung Electronics headquarters in southern Seoul (Yonhap)
South Korean retail investors last week injected over 1.2 trillion won ($1.1 billion) to buy Samsung Electronics shares that touched the 70,000 won mark for the first time earlier this month, data showed Monday.
During the five trading sessions, small domestic investors scooped up nearly 1.26 trillion won of the blue chip shares, while foreign and institutional investors offloaded a net 1.07 trillion won and 286.4 billion won worth of the shares, respectively, according to the Korea Exchange data.
Buoyed by a rosy chip market outlook, Samsung Electronics’ stock price has continued its rally from last month. After setting a 10-month high of 63,200 won on Nov. 13, it has maintained upward momentum to reach 70,000 won during trading on Dec. 3.
The shares reached a new all-time high of 74,500 won during Monday’s trading and ended at 73,800 won, up 400 won, or 0.54 percent, from the previous session’s close. It was buttressed by retail investors who bought a net 149.06 billion won of the shares. However, foreigners sold a net 11.59 billion won and institutional investors dumped stocks to the tune of 150.83 billion won.
Foreign investors hoisted Samsung shares in November as they bought a net 2.53 trillion won from Nov. 5-17. But later, retail investors took up the baton as market watchers painted a rosy future for Samsung’s business performance and stock price.
As of Friday, Samsung Electronics’ annual operating profit was some 46.22 trillion won for next year, up 24.82 percent from this year, according to local brokerage houses consensus compiled by financial market tracker FN Guide. Some analysts also suggested that the company’s target prices will go over 90,000 won.
DB Financial Investment’s analyst Eo Gyu-jin raised the target price to 95,000 won from the previous 72,000 won, as he saw the semiconductors market on the threshold of a rebound. The expert also forecasts that Samsung’s performance is likely to continuously improve on rising chip prices until 2022.
“The DRAM chips’ average selling price is likely to rebound faster-than-expected in the first quarter of next year. Backed by the foundry industry’s growth, Samsung will further expand its profits,” said Kim Dong-won, an analyst at KB Securities, while adding the target price has increased from 88,000 won to 92,000 won.
By Jie Ye-eun (email@example.com