As Samsung Electronics shares have risen sharply recently, buying by individual investors has strengthened. Over the past week, net purchases by individuals reached 3 trillion won. At the same time, margin balances also grew to an all-time high.
According to the Korea Exchange (KRX) on the 11th, individual investors made net purchases of 2.915 trillion won in Samsung Electronics shares from the 5th to the 9th of this month. It was the largest weekly net purchase since the second week of Sep. 2024 (2.953 trillion won). During this period, individuals were net buyers of Samsung Electronics for five straight trading days. This contrasts with net sales of 167 billion won in SK hynix over the same period.
"Debt investing" is also intensifying. As of the 8th, Samsung Electronics margin balance stood at 197.7 billion won, the highest on record. It increased for seven consecutive trading days from the 29th of last month through that day.
A margin balance refers to the amount that remains unpaid after a transaction in which an investor borrows money from a securities firm to buy stocks (margin financing) or borrows stocks to sell them first and then repurchases them to return (stock lending). If the margin balance is excessively high, there is a risk of forced selling if the stock price plunges in the short term.
The market says expectations for increased demand for memory chips driven by expanded artificial intelligence (AI) investment are fueling buying of Samsung Electronics. In this environment, Samsung Electronics releasing its fourth-quarter results on the 8th turned into a positive catalyst. Samsung Electronics said its preliminary operating profit for the fourth quarter of last year was 20 trillion won, up 208.2% from a year earlier. It set a new record for the largest quarterly result in about seven years. On the day the results were released, individual investors were net buyers of 985 billion won of Samsung Electronics.
Brokerages are raising their target prices as they lift this year's earnings forecasts for Samsung Electronics. According to FnGuide, as of the 8th, the average target price for Samsung Electronics was 154,423 won, up 17,654 won from the previous 136,769 won. KB Securities raised its target to 200,000 won.