Last year, foreign investors displayed remarkable confidence in Samsung Electronics, the world's leading memory chipmaker, propelling their net purchases of the company's stocks to an all-time high, as per data from the Korea Exchange (KRX).
The data revealed an exceptional net acquisition of Samsung Electronics stocks, amounting to 16.7 trillion won ($12.9 billion) by offshore investors. This achievement marks the most substantial foreign net buying of Samsung Electronics shares since KRX began tracking such data in 1999, as reported by Yonhap news agency.
Interestingly, after three consecutive years of being net sellers of Samsung Electronics stocks (from 2020 to 2022), foreign investors pivoted in 2023, becoming net buyers. This turnaround led to a considerable increase in their ownership from 49.6 percent to 53.9 percent of Samsung Electronics shares.
Analysts, such as Na Jung-hwan from NH Investment & Securities Co., attribute this surge in foreign investment to the optimistic expectations regarding a potential revival in the chip industry. The positive industry outlook encouraged foreign investors to place their confidence in Samsung Electronics.
Reflecting this surge in investor confidence, Samsung Electronics' stock prices experienced an upward trajectory, rising for seven consecutive days and reaching a yearly high of 78,500 won on the final trading day of 2023.
In a parallel trend, foreign investors also increased their holdings in SK hynix, the second-largest memory chipmaker, with net purchases totaling 2.8 trillion won in 2023, marking a significant uptick from the previous year's net buying of 833 billion won in 2022. This aligns with the overall positive sentiment surrounding the semiconductor industry, which drove increased investment in major players like SK hynix alongside Samsung Electronics.
(With Agency Inputs)
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