In a significant market development, foreign investors displayed robust confidence in Samsung Electronics, the global leader in memory chip manufacturing, with an all-time high net purchase of stocks last year. Bourse data from the Korea Exchange (KRX) reveals that offshore investors accumulated a net value of 16.7 trillion won ($12.9 billion) in Samsung Electronics stocks in 2023, marking the largest foreign net buying since the initiation of data compilation in 1999 by KRX.
Key Highlights:
- Record-Breaking Net Purchases: Foreign investors’ net purchases of Samsung Electronics stocks reached an unprecedented 16.7 trillion won in 2023, signaling a strong endorsement of the company’s growth prospects.
- Semiconductor Industry Optimism: The surge in foreign investments is attributed to the positive outlook for the semiconductor industry, with investors betting on a recovery.
- First Net Buying in Four Years: This marks the first time in four years that foreigners turned net buyers of Samsung Electronics, previously remaining net sellers from 2020 to 2022.
- Market Capitalization Dominance: Samsung Electronics retains its position as the largest stock on the main KOSPI bourse, with foreigners now holding 53.9% of its shares, a notable increase from 49.6% the previous year.
- Stock Performance: Samsung Electronics stocks witnessed a seven-day consecutive rise, closing the year at 78,500 won, the highest for 2023.
Analysts, including Na Jung-hwan from NH Investment & Securities Co., attribute the increased foreign interest to the positive chip industry outlook. Additionally, SK hynix, the second-largest memory chipmaker, also experienced a surge in foreign net purchases, reaching 2.8 trillion won in 2023.
