KOSPI Records Its Biggest Value since 5 Years and 8 Months Ago
Samsung Electronics’ market capitalization surpassed $268 billion (300 trillion KRW) for the first time in stock markets on the 21st. KOSPI also went from 2170 points to almost 2180 points after changing its annual highest value one after the other.
KOSPI ended this day with 2178.38 points which is 21.37P (0.99%) increase from previous day. Based on end of the day price, this is its highest value since 8th of July in 2011 when it ended that day with 2180.35 points.
Samsung Electronics’ stocks increased up to $1,906 (2.134 million KRW) and its market capitalization surpassed $268 billion (300 trillion KRW). There are 140,679,337 listed stocks from Samsung Electronics and market capitalization will surpass $268 billion if each stock is valued at $1,905 (2.133 million KRW).
Market capitalization of $268 billion (300 trillion KRW) corresponds to 11th place out of market capitalizations from top 100 global companies that were announced by Korea Exchange on the 8th. At that time, Samsung Electronics was the 16th place globally based on market capitalization and this value surpasses Tencent, Bank of America, Alibaba, AT&T, and GE that were previously ahead of Samsung Electronics.
On this day, Samsung Electronics also had its highest end of the day price as its stock finished the day being worth $1,901 (2.128 million KRW) which is $29.48 (33,000 KRW (1.58%)) increase from previous day. Organizations have joined a group that is purchasing Samsung Electronics’ stocks while foreigners had sold Samsung Electronics’ stocks for five days in a row.
Samsung Electronics’ stocks made a record for 5 days street in last week. After starting as $1,813 (2.03 million KRW) on the 13th, its stock was valued at $1,841 (2.068 million KRW), $1,843 (2.07 million KRW), $1,849 (2.092 million KRW), and $1,894 (2.12 million KRW) on the 14th, the 15th, the 16th, and 17th respectively. Although its stock went down little bit to $1,876 (2.10 million KRW) on the 20th, it went back up again on the 21st.
Stock firms believe that booming of semiconductor industries, release of Galaxy S8, expectations on improvement in management structure such as change in holding company are the elements that are increasing values of Samsung Electronics’ stocks.
“Samsung Electronics’ semiconductor sector is estimated to make about $7.15 billion (8 trillion KRW) of operating profits per quarter after second half of this year as improvement in its performance has become clear due to booming of DRAM and NAND-flash industries.” said Lee Sae-cheol who is a researcher for NH Investment & Securities Co., Ltd. “Because its IM sector is also likely to return to normal, it is expected that recovery of its performance will take place on full-scale after Galaxy S8 is released.”
Stock firms are increasing Samsung Electronics’ target stock prices all together. Meritz Securities Co., Ltd. increased target stock price from $2,081 (2.33 million KRW) to $2,430 (2.72 million KRW) while NH Investment & Securities Co., Ltd. and Nomura Securities Co., Ltd. have presented $2,322 (2.60 million KRW) and $2,412 (2.70 million KRW) respectively as target stock prices.
On the other hand, Hyundai Motor Company rewrote its 52 week high as many foreigners were interested in buying its stocks. On this day, its stocks were valued at $152 (170,000 KRW) which is $12.06 (13,500 KRW) increase from previous day. Its market capitalization also surpassed $33.1 billion (37 trillion KRW) which helped Hyundai Motor Company to take 2nd place by pushing out SK Hynix.
On this day, KOSPI rewrote its highest value since July of 2011 due to interests in buying from foreigners and Samsung Electronics’ highest record.
Foreigners purchased about $331 million (370 billion KRW) of stocks when they were interested in selling stocks just a day prior. Organizations started selling stocks in the afternoon while individuals sold about $214 million (240 billion KRW) of stocks. On the other hand, KOSDAQ recorded 609.73 points which is 0.62P increase from previous day.
Staff Reporter Lee, Sungmin | smlee@etnews.com
