The KOSPI has recovered the '3000 points' mark, while Samsung Electronics' market capitalization percentage in the KOSPI market has recorded its lowest level in over nine years as of June.
According to the Korea Financial Investment Association on the 7th, the market capitalization share of common stocks of Samsung Electronics in the securities market last month stood at 14.53%. This marks the lowest level since 14.53% in March 2016.
When combined with preferred stocks, the market capitalization share stands at 16.17%, also the lowest since 15.83% in February 2016. Historically, Samsung Electronics' market capitalization share in the KOSPI has remained above 20%. In March 2020, it even recorded 27.82%. However, it declined below 20% to 18.63% in October last year, and last month it fell to the 16% range, marking the lowest level in over nine years.
The market capitalization share is the ratio obtained by dividing the total value of daily transactions of Samsung Electronics by the total value of all stocks traded in the securities market, averaged over one month.
Last month, while the KOSPI surged daily on expectations of the new government's stock market stimulus measures, Samsung Electronics' stock price could not keep pace, leading to a faster decline in its market share. The KOSPI rose by 13.86% in June, while Samsung Electronics' stock price only increased by 6.41%.
The market pointed to the continued weakness in the device solutions (DS) division, the semiconductor business unit, as the background for Samsung Electronics' market capitalization share dropping below 20%. This is due to the ongoing losses in the non-memory sectors, such as foundry, and the fact that the competitiveness of high-bandwidth memory (HBM) has yet to be proven.
However, there are forecasts that Samsung Electronics' performance will improve starting in the third quarter as HBM revenues increase. Park Yu-ak, a researcher at Kiwoom Securities, noted, "For the stock price to gain momentum, visualizing supply of HBM3e to NVIDIA, a leader in the AI industry, expanding market share through securing new foundry customers, and achieving technological competitiveness in HBM4 through improvements in the 1cnm process will be necessary." He added, "The third quarter is a period when these momentum factors can be visualized or verified."