Stays below KRW400tn Mark
Samsung Electronics’ market capitalization fell to 387 trillion won on May 12, going below the 390 trillion won range four days after the 400 trillion won mark was broken on May 6. This means that the company lost one quarter of its market capitalization in a year and a half.
Samsung Electronics closed at 64,900 won on May 12, down 800 won (1.22 percent) from the previous trading day. Its market capitalization slid to 387,438.9 billion won.
Samsung Electronics’ market capitalization recorded 405,348.2 billion won on May 4, but it posted 396,990.5 billion won on May 6, falling below the 400 trillion won mark. It fell further to 394.602.6 billion won on May 9 and 392,214.7 billion won on May 10 and 11.
Samsung Electronics’ market capitalization rose to 543,250.2 billion won when its stock price hit 91,000 won on Jan. 11, 2021. At the beginning of 2022, it sat in the 470 trillion won range, but shrank to the low 400 trillion won range as the stock price fell below 70,000 won.
Samsung Electronics' share price recently showed a slight recovery before turning downward again after the “big step” rate hike by the U.S. Federal Open Market Committee (FOMC). A big step refers to a one-time 0.5 percentage point increase in the key interest rate. As foreigners and institutional investors offload the stock, its price is on a sharp downward curve.
As the U.S. consumer price index (CPI) exceeded expectations in April, raising concerns about inflation, the possibility of a big interest rate hike increased, leading to a sell-off of tech stocks. As a result, concerns about semiconductor stocks are on the rise.
Research centers of securities firms, which had issued positive reports about Samsung Electronics, are lowering their target prices.