Retail Investors Absorb $6.2B in Samsung Shares Amid Foreign Sell-Off

South Korean retail investors continue to accumulate shares of Samsung Electronics, the largest company by market capitalization on the KOSPI, absorbing massive sell-offs from foreign and institutional investors and providing support for the stock price.

According to the Korea Exchange on April 12, individual investors net purchased 938.5 billion won ($657 million) worth of Samsung Electronics shares over three trading days from April 9-11. During the same period, foreign investors net sold 756 billion won and institutional investors net sold 227 billion won.

The trend becomes more pronounced over a longer timeframe. While foreign investors have maintained a selling stance on Samsung since March 13, retail investors recorded net buying on all but two days—March 24 and April 10.

Retail investors' net purchases of Samsung Electronics this month total 6.21 trillion won ($4.35 billion). Following a 19.86% decline in Samsung's share price after the Iran crisis, individual investors viewed the drop as a buying opportunity and increased their positions. They anticipate the stock will rebound strongly once Middle East tensions ease, as the long-term valuation outlook for major semiconductor stocks remains intact.

Foreign and institutional investors net sold 6.17 trillion won and 953.4 billion won respectively during the same period. As a result, foreign ownership fell to 49.67% on April 9, dropping below 50% for the first time in approximately eight months since July 17 last year, when it stood at 50.08%.

Some securities firms have raised their target prices for Samsung even after the Middle East crisis, reflecting expectations for improved earnings this year. DB Financial Investment recently raised its target price from 190,000 won to 230,000 won. Analyst Seo Seung-yeon at DB Financial Investment said Samsung's memory business performance will remain solid, revising the company's operating profit forecast for this year upward from 17.92 trillion won to 22.41 trillion won.

Kim Young-gun, analyst at Mirae Asset Securities, noted: "Samsung's stock recorded a cumulative decline of 19.9% in just five trading days following panic selling after the U.S. airstrikes on Iran, but leading indicators for the memory sector remain solid. The stock has become more attractive from a valuation perspective because earnings estimates have been maintained despite the sharp price decline."