Samsung Elec remains as retail favorite on Kospi, although returning minus yield

Samsung Electronics stayed as retail favorite on the main Kospi in the first half, although the stock has repaid poorly – at minus return – compared with 50 percent gain last year.

Top 10 stock picks by retail investors in the first half consisted of large-cap semiconductor, internet platforms and automobile stocks like Samsung Electronics, SK hynix, Hyundai Mobis, Kakao, LG Electronics, Hyundai Motor, and Naver.

The country’s top heavyweight Samsung Electronics remained their favorite, as retail investors net purchased 23.8 trillion won ($21.06 billion) in the bellwether stock in the January-June period, or 39 percent of their total buying amounting to 61.5 trillion won, according to the Korea Exchange on Sunday.

The investment had paid off poorly. It yielded minus 2.2 percent in the first half, compared with 50 percent last year.

Shares of Samsung Electronics finished Monday up 0.37 percent at 81,900 won. It had been boxed at around 80,000 throughout the first half.

Samsung Electronics preferred stocks, Hyundai Mobis and Samsung Electro-Mechanics also showed minus returns.

Platform giant Kakao performed most well among retail top 10, delivering a 9.5 percent return rate. Kakao shares have been on a roll since a 5-to-1 stock split in April. Its market cap touched 70 trillion won milestone, landing at No.3 on Kospi to replace Naver, a longstanding leader in the internet category.

Individual investors as a whole earned much less compared to last year. Return on six stocks which delivered positive returns averaged at 5.6 percent, well below last year’s average of 36.1 percent.

The smaller returns are mainly attributable to mixed performances across the industries as the economy resumed in line with the progress of vaccination campaigns while some suffering from supply shortages, unlike last year when the stock market rallied after bottoming out on the back of liquidity injection.

Brokerage houses still are upbeat in overall market performance.

“The Kospi is expected to continue its upward trend and achieve this year’s target of 3,630, mainly led by internet platforms, chips, secondary cell batteries and automobiles,” said Lee Kyeong-min, investment strategy manager at Daishin Securities.

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