Samsung share prices have dropped to a 22-month low for a brief moment earlier today, as institutional investors went on a Samsung Electronics share selling spree due to worries over an economic recession looming over the South Korean market and abroad.
Samsung shares finished at 56,200 won ($43.21) on Friday, but not before reaching a 22-month low of 55,900 won ($42.98). Samsung's share value dropped 1.4% from the previous day. (via The Korea Times)
Investors went on a selling spree four days ago and continued today amid fears of an economic recession. Market analysts blame reduced demand for IT devices and falling DRAM prices caused by the global economic slowdown and the lockdowns in Shanghai, China.
Hi Investment & Securities analysts believe that if the lockdowns are lifted, “the production and shipment of devices will increase,” and demand should grow.
On the other hand, NH Investment & Securities analysts speculate that the memory chip supply and demand imbalance will continue for longer than expected to early 2023 due to ongoing external factors like global rate hikes and the Russo-Ukrainian war.
Industry reports say retail investors purchased Samsung shares worth 40 billion won on Thursday. However, foreign investors sold 9.8 billion won worth of shares, while institutional investors sold shares with a total value of 30 billion won.
Market watchers expect Samsung's earnings to rebound in the second quarter of 2022. They estimate that the company's operating profit reached 14.5 trillion won during the April-June quarter, representing a 15% yearly increase.
Join SamMobile’s Telegram group and subscribe to our YouTube channel to get instant news updates and in-depth reviews of Samsung devices. You can also subscribe to get updates from us on Google News and follow us on Twitter.
