Frightful Scamper

Rumors are circulating that the freight logistics division of Samsung SDS will be merged with Samsung C&T.
Rumors are circulating that the freight logistics division of Samsung SDS will be merged with Samsung C&T.

 

On Nov. 20, Samsung SDS gained 7.28 percent from the previous trading session in KOSPI to close at 398,000 won (US$357) per share. The stock price reached a new high upon the opening of the session to hit the 400,000 won (US$359) mark in the afternoon and continue its upward movement for four consecutive days. The trading volume amounted to approximately 1.7 million shares, almost double that of the preceding session.

The foreign investor shareholding ratio has increased by 0.57 percentage points (approximately 440,000 shares) to 1.52 percent (1.173 million shares or so) since Nov. 14, when the company was listed on KOSPI.

At present, Samsung SDS is the fourth-largest company in the stock exchange. Its aggregate market value totals 30.7964 trillion won (US$27.7 billion), 3.6 trillion won (US$3.2 billion) short of SK Hynix, taking third place.

On its first day, the opening quote was 380,000 won (US$341), double the public offering price, but the profit-taking orders dragged down the price by close to 14 percent, making the closing price 327,500 won (US$294). However, foreign and institutional investors have kept buying the stocks since then in the interest of their index fund return.

In addition, the news that Samsung SDS would become a part of the MSCI from Nov. 26 bolstered the price as well. Securities companies have suggested a target stock price of up to 600,000 won (US$538) for Samsung SDS.

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