Samsung Shares Rise To Pre-Pandemic Period
Foreign investors seem confident that South Korea-based technology giant Samsung will heal the economic wounds left behind by COVID-19 in the next year. Investors, who anticipated growth in various segments – especially in the semiconductor market – showed intense interest in Samsung shares during the past week .
The company’s shares, which gained value as a result of intense demand, rose to a level similar to the pre-COVID-19 outbreak . The Korea Economic Daily announced that global investment firms JP Morgan bought 3.41 million shares of Samsung last week , while Merril Lynch continued to hold 2.22 million shares during the same period. The company claims that other individual investors sold a net worth of 2.9 trillion won ($ 2.6 billion) .
Samsung stocks are expected to continue to rise in the long term:
The strong movement in share prices driven by foreign investors stems from the improvement in business conditions in the semiconductor industry , increases in dividends and capital inflows to emerging markets . Investors believe Samsung will recover in 2021 and further strengthen its presence in the semiconductor industry.
Foreign investors have purchased 578.5 billion won ($ 518 million) worth of shares today alone. Starting the day at 61,300 won, Samsung’s shares traded at 63,200 won ($ 57), the highest level since the COVID-19 outbreak began following recent The South Korean company was the world ‘s largest DRAM supplier for the smartphone market in the first half of 2020 .
In addition to the expectations in the semiconductor industry, other external factors such as exchange rates, interest rates and capital inflows to emerging markets also convince investors that the price increase in Samsung shares will continue .