Even the purchase of foreigners and treasury stocks that returned...Will Samsung Electronics go up?

[Anchor]
Samsung Electronics' stock price recently plunged to the 40,000 won level and jumped more than 7%.

The return of foreigners was largely due to the low-priced buying, and attention is being paid to whether the stock price rebound will be bolstered by the announcement of treasury stock purchases worth 10 trillion won on the same day.

I'm reporter Lee Hyungwon.

[Reporter]
Samsung Electronics' stock price, which exceeded 90,000 won in July alone, has gone downhill since then.Investors turned their backs on


as they fell behind in the competition for semiconductor technologies such as high-bandwidth memory and HBM.

Eventually, it fell to the 40,000 won level in four years and five months.

As stock plunges more than 40% in four months,

This time, there was a lot of low-priced buying.

Shares soared more than 7% as foreigners returned to buying after 13 trading days.After the closing of the

chapter, the purchase of treasury stocks worth 10 trillion won was announced.

As the stock price is a defense measure, there is a prospect that it could be a good thing.

In fact, after purchasing KRW 9 trillion in 2017, the stock price soared by more than 50% in nine months.

However, many point out that there will be limits to boosting stock prices because the background of the purchase is different from the time when the performance was supported.

[Lee Jung-hwan/Professor of Hanyang University's School of Economics and Finance: We bought back our own shares to support the stock price's decline even though profitability and cash flow are not good.... Big stocks like Samsung Electronics follow fundamentals, and if the environment does not improve, it is difficult to expect a sharp rise in stock prices....]

It means that we need to secure competitiveness and performance to continue the rebound, but the situation is not easy.

[Na Jung-hwan / NH Investment & Securities researcher: Due to Trump's policy and uncertainty in semiconductor performance, securities companies continue to lower their target stock prices, which means that their 12-month forward earnings forecast is being lowered.]

As the Trump administration, which will be launched in January next year, is putting forward its own priority, related policies are also considered a variable that will determine the flow of Samsung Electronics' stock prices.

I'm Lee Hyungwon of YTN.

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video: Eunkyung Lee

Graphic: Jeon Hwilin