Seoul: Foreign ownership of Samsung Electronics Co. has once again exceeded the 50 percent mark in the South Korean stock market, while retail investors have shown a preference for SK hynix Co. this month.
According to Yonhap News Agency, in the first three weeks of this month through Friday, foreign investors purchased a net 1.877 trillion won (US$1.34 billion) worth of Samsung Electronics shares. This figure more than doubles their net buying of 713 billion won for all of last month, as reported by the Korea Exchange (KRX). As of Friday, foreign investors held a 50.19 percent stake in the tech giant, marking the first time their ownership has surpassed this threshold since April 24, when it was recorded at 50 percent.
The surge in Samsung Electronics shares was bolstered on Thursday after the Supreme Court upheld the acquittal of Chairman Lee Jae-yong, affirming lower court rulings that cleared him of financial crimes related to a 2015 merger between Samsung affiliates that consolidated his control over the conglomerate.
Conversely, foreigners reduced their holdings in SK hynix by offloading 301 billion won worth of stocks in the first three weeks, thus ending their two-month buying streak in the broader market. SK hynix shares saw a decline after Goldman Sachs downgraded the chipmaker to neutral from buy on Thursday, citing potential declines in high bandwidth memory (HBM) prices next year due to increased competition.
On the same day, Samsung shares rose by 3.09 percent to close at 66,700 won, while SK hynix experienced an 8.95 percent drop, closing at 269,500 won. Influenced by the adjustments in foreign portfolios, Samsung shares have gained 12.2 percent this month, whereas SK hynix has seen a 7.9 percent decrease.
Meanwhile, retail investors have taken a different approach, acquiring a net 1.23 trillion won of SK hynix shares and selling 2.31 trillion won of Samsung shares during the same timeframe.