Samsung's stock price was off to a very good start last year as investors were convinced that the company would continue to see monumental growth in 2016. The stock nosedived following the Galaxy Note 7 recall but the recovery was quick. It's hitting fresh new highs every other day now. Since October 2016, Samsung Electronics' share price surge has exceeded that of Apple by more than 10 percentage points. The company now accounts for more than 20 percent of the market capitalization of the Korea Composite Stock Price Index (KOSPI) for the first time in four years.
The share price hit a fresh new high yesterday of 1.9 million won ($1,596), up 2.79 percent from the previous day's close. It has been surging for four days straight. This is also the first time that Samsung's share price has crossed the 1.9 million won barrier after the company went public in 1975. Market data shows that while institutional investors are selling Samsung stock to book profit, foreign investors are gladly buying them and that's leading to an increase in the price.
The stock's performance is in stark contrast to that of rival Apple. The Cupertino company's stock price has been facing volatility caused in part by its sluggish performance over the past few quarters. While Samsung's Q4 2016 result is expected to beat market expectations, Apple's Q4 2016 earnings are believed to post a year-over-year decline in annual sales and net profit for the first time in 15 years. That's something that investors take note of and trim their positions accordingly.
