[Asia Economy Reporter Koh Hyung-kwang] Amid the sluggish stock price movement of Samsung Electronics, individual investors leading the bullish market have been steadily accumulating Samsung Electronics shares. However, the buying momentum of individuals in Samsung Electronics appears to be gradually slowing down.
According to the Korea Exchange on the 1st, individual investors purchased a total of 593 billion KRW worth of Samsung Electronics shares in the KOSPI market last month. Although the net buying volume of Samsung Electronics by individuals last month significantly decreased compared to March (4.9587 trillion KRW), it slightly increased compared to April (436.7 billion KRW).
Since the beginning of this year, individuals have been concentrating their purchases on Samsung Electronics shares. In January alone, they net bought 1.2769 trillion KRW, followed by 1.6005 trillion KRW in February, and a record high of 4.9587 trillion KRW in March. Although the buying volume slightly decreased in April and May, Samsung Electronics has consistently been the top net purchased stock by individuals each month this year. The total net buying volume of Samsung Electronics by individuals this year amounts to 8.866 trillion KRW. This is significantly higher compared to the second and third most purchased stocks by individuals, Samsung Electronics Preferred Shares (1.999 trillion KRW) and SK Hynix (1.5226 trillion KRW).
Contrary to investors' expectations, Samsung Electronics’ stock price showed a sluggish trend, rising only 1.4% last month. The buying momentum of individuals has slowed, and the return of foreign investors to the domestic stock market has been delayed, limiting the upward movement of Samsung Electronics’ stock price. Foreign investors net sold 496.6 billion KRW worth of shares last month and have sold a total of 7.105 trillion KRW worth of Samsung Electronics shares this year. Roh Dong-gil, a researcher at NH Investment & Securities, explained, "Samsung Electronics has foreign ownership exceeding 50% and is included in major indices such as KOSPI 200, which have significant foreign investment, so it is inevitably heavily influenced by foreign investor supply and demand."
The securities industry still maintains a positive outlook on Samsung Electronics. Despite U.S. sanctions on Huawei, there is room for Samsung Electronics to benefit indirectly, and if foreign investment inflows increase due to an overall improvement in market sentiment, Samsung Electronics’ stock price could gain momentum. Lee Soo-bin, a researcher at Daishin Securities, stated, "The semiconductor production disruption caused by COVID-19 is limited, and production lines both domestically and internationally are operating stably," adding, "U.S. sanctions on Huawei could serve as an opportunity for Samsung Electronics to expand its smartphone market share."
Individual interest in Samsung Electronics is gradually shifting toward untact (non-face-to-face) stocks. Last month, individual investors net purchased 461 billion KRW and 333.6 billion KRW worth of shares in Naver and Kakao, respectively, which are considered representative beneficiaries of the untact trend. These stocks ranked second and third in individual investor net purchases last month. Kim Yong-gu, a researcher at Hana Financial Investment, evaluated, "In a liquidity-driven market, individuals seem to be reflecting a preference for blue-chip stocks that can simultaneously show earnings momentum and corporate value growth."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
