Samsung Electronics’ stock, the largest of the South Korean stock market, hit the record high price thanks to strong purchases by foreign investors. The stock price increase is attributed to reduced uncertainty in the global financial market following the end of the U.S. presidential election, increasing expectations for the recovery of the semiconductor industry, and the capital inflow to emerging countries as a result of the weak dollar.
Samsung Electronics closed at 63,200 won on Friday, up 2,200 won, and replacing the previous record price of 62,400 won in about 10 months. Foreign investors net-purchased 578.5 billion won, driving the upward trend. It is the second-largest net-purchase amount since July 28 this year. They have bought a total of 256.1 billion won of Samsung Electronics’ stock for six consecutive trading days since November 5. Meanwhile, individual investors sold 703.3 billion won to make profits. The electronic giant’s market capitalization is 377.29 trillion won with an increase of nearly 35 trillion won this month alone.
The global financial market environment and expectations for the semiconductor field have led the stock price together. Samsung Electronics is also considered more attractive as DRAM’s price is forecasted to bounce back after the fourth quarter and the company’s dividends are expected to expand. “Such an upward trend will continue for a while,” said Choi Seok-won, the head of the research center at SK Securities.