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Samsung Electronics remains favourite pick among retail stock investors

THE KOREA HERALD/ANN – Despite the recent bearish price movement, South Korean tech titan Samsung Electronics remained a favourite pick among retail stock investors in hopes of a price rebound of the market bellwether.

From January until last Friday, retail investors purchased KRW20.9 trillion (USD17 billion) worth of Samsung Electronics common shares on the stock market, meaning nearly one in four retail stock investment went to the single company, the Korea Exchange data showed
on Sunday.

The volume of Samsung stock purchase was followed by those of battery maker LG Energy Solution, drugmaker Ildong Pharmaceutical, shipping company HMM and Internet giant Kakao.

Day traders in Korea sold a combined KRW12.78 trillion of Samsung Electronics shares during the same period. As a result, the institutional investors‘ money that travelled to Samsung Electronics during the period exceeded KRW8 trillion, the highest among some 2,300 listed companies.

Retail investors’ entire purchase of listed shares on the KRX came to KRW870.9 trillion, while sales reached KRW851.9 trillion.

The news comes in contrast with the fall of the Samsung Electronics share price. During the cited period, Samsung Electronics shares slipped 13.7 per cent, while KRX‘s main board benchmark Kospi dropped 9.3 per cent. More than KRW55 trillion of market cap evaporated in the past three months. Samsung Electronics’ market cap amounted to KRW404.8 trillion won last Friday, taking up 16 per cent of all listed firms‘ market cap combined on the KRX.

The downtrend continued even after Samsung Electronics’ consensus-beating quarterly earnings guidance announced last Thursday. Samsung is estimated to see its first-quarter operating profits surge over 50 per cent on-year and revenue rise by nearly 20 per cent.

The Samsung logo displayed on a glass door in Seoul. PHOTO: AFP