Samsung Electronics' Stock Remains Sluggish
The Korea Exchange announced on Nov. 15 that the total market capitalization of the 23 Samsung Group stocks in the South Korean stock market decreased from 744 trillion won to 678 trillion won from the end of last year to Nov. 12 this year whereas the combined market cap of the 26 SK Group stocks in the same market increased from 172 trillion won to 198 trillion won in that period.
The former is because of Samsung Electronics. The price of the Samsung Electronics common stock was 81,000 won on Dec. 30 last year, but the current price is around 70,000 won. The market caps of the Samsung Electronics common and preferred stocks fell approximately 62 trillion won and 6.66 trillion won in that period, respectively.
When it comes to the common stock, net selling by foreign and institutional investors amounted to 21 trillion won and 14 trillion won in that period, respectively. Meanwhile, net buying by individual investors added up to 35 trillion won.
The combined market cap of the non-Samsung Electronics parts of Samsung Group increased approximately 3 trillion won. Samsung SDI’s stock price rose by almost 12 percent and market cap increased by more than 8 trillion won. The market cap of Samsung Fire & Marine Insurance increased 1.9 trillion won and that of Samsung Engineering jumped 73 percent.
In the meantime, SK Group’s newly listed subsidiaries made a substantial contribution to the group’s market cap this year. For example, the current market caps of SK Bioscience and SKIET are 18 trillion won and 12 trillion won, respectively. That of SK REIT, which went public in September, is about 1 trillion won.
The market cap of the SK Group stocks excluding the three new stocks was 166 trillion won on Nov. 12, down 3.3 percent compared to the end of 2020. Especially, the market cap of SK Hynix dropped 8.7 trillion won and that of SK Biopharmaceuticals dropped 5.4 trillion won. The stock price of the pharmaceutical company plummeted from over 170,000 won to 100,000 won from the end of 2020 to the end of March this year.