Retail investors net sellers of Samsung Electronics shares amid mixed outlook

[Photo by MK DB]

South Korea’s individual investors, who were among the biggest bargain hunters in Samsung Electronics Co. last year, have sold nearly 10 trillion won ($765 million) of the company’s stock in the first six months of this year, taking profit from the market rebound.

In the period between Jan. 2 and June 23, individuals net sold Samsung Electronics shares worth 9.41 trillion won, according to the Korea Exchange on Monday. This is a reversal from last year when they net bought 16 trillion won worth of shares while the stock price continued to decline. Foreign investors, on the other hand, were the biggest buyers of Samsung Electronics with 11 trillion won, driving the stock price higher in the first half-year period.

Samsung Electronics’ second-quarter earnings, which are expected to be released early next month, will be the key variable that will affect the company’s stock price going forward. According to market tracker FnGuide, Samsung Electronics’ second-quarter revenue is expected to fall 19.61 percent on-year to 62.06 trillion won. Operating profit is estimated to plunge 98.57 percent to 15.5 billion won.

There are concerns that Samsung Electronics could post an operating loss due to the poor performance of its DS division. BNK Securities Co., SK Securities Co. and Shinhan Investment & Securities Co. all predicted that Samsung Electronics will post an operating loss in the second quarter.

On the other hand, there are also expectations that the company will post an earnings surprise that beats market expectations. “Samsung Electronics’ estimated operating profit for the second quarter is expected to be 901.2 billion won, about five times higher than the consensus,” said Kim Dong-won, an analyst at KB Securities Co.