This photo, taken on April 7, 2020, shows the outdoor signage of Samsung Electronics Co. at its office building in Seoul. (Yonhap)
SEOUL, July 22 (Korea Bizwire) — Foreign investors have turned to net buyers of top-cap Samsung Electronics Co. this month following months of massive selling, data showed Wednesday.
Offshore investors’ net purchase of Samsung shares stood at 1.07 trillion won (US$900 million) in the first 21 days of July, making the tech giant their most-bought issue, according to the data from the Korea Exchange.
The figure represents a sharp turnaround from their previous selling binge. In the first five months of the year, foreigners sold a net 7.1 trillion won worth of Samsung shares, posting a record net-selling streak.
But institutional investors’ attitude began to change in June, purchasing a net 404 billion won of shares in Samsung, the world’s top memory chip and smartphone maker.
In contrast, foreign investors unloaded bio and contact-free issues this month, suggesting they are turning their eyes to large-cap semiconductor stocks.
Offshore investors sold a net 835 billion won worth of SK Biopharmaceuticals Co., which debuted on the local bourse early this month, making it the most net-sold issue.
Market watchers expressed hopes that Samsung’s share price may rise down the road in light of its improving earnings and investors’ expected bets on the tech behemoth.
As of Tuesday, Samsung’s share price was down 0.9 percent from the start of the year, contrasting with a 1.4 percent gain in the benchmark Korea Composite Stock Price Index (KOSPI)
“Samsung’s share price is expected to show a positive trend in the coming months as its flagship chip and mobile divisions are likely to continue growth momentum,” said Kim Kyung-min, an analyst at Hana Financial Investment.
In its earnings guidance unveiled on July 7, Samsung projected its second-quarter operating profit to reach 8.1 trillion won on sales of 52 trillion won thanks to strong chip and display business.
The estimate far beat the market consensus of 6.8 trillion won in a survey conducted by Yonhap Infomax, the financial arm of Yonhap News Agency.
(Yonhap)
