[Economy pick] "Two days worth of buying treasury stocks?"Samsung Electronics' stock price withers.

[Anchor]
It's an economic pick time to look at today's economic issues with a reporter from the Ministry of Economy.

Ryu Hwan-hong, a reporter from the Ministry of Economy, is here.

Welcome.

The first issue was, "Two days after the effect of purchasing treasury stocks?"…Samsung Electronics' main stock is withering. Samsung Electronics shares fell again today, right?

[Reporter]
Yes, do you both have shares in Samsung Electronics?

Samsung Electronics closed 1.78 percent lower at 55,300 won today.

It was down 0.71 percent yesterday as well.

Last Friday, there were 10 trillion won worth of treasury stock purchases and 3 trillion won worth of treasury stock retirement disclosures.

The move came as the 50,000 won level collapsed on the 14th, a day earlier.

On Monday, the next trading day, the stock price soared 5.98% (7.5% in trading) as investor sentiment picked up.

However, as stock prices have fallen for two days each year, some say that they may have exhausted their efforts.

There is an NVIDIA earnings report tomorrow, but SK Hynix's stock price did not rise and ended at yesterday's closing price.

Of course, it is too early to evaluate that the stock purchase effect has been completed with the stock price for two days.

In the past, Samsung Electronics has bought back its own shares when the stock price falls a lot.

If you look at it recently, it was in 2015 and 2017.

Looking at the stock price trend over the year after the share buyback, it rose 14.29% in 2015 and 28.8% in 2017.

In the long run, the stock showed an upward trend.

Of course, there are questions about whether this can be seen as a full share buyback effect.

Share buybacks are certainly an opportunity for a rebound, but many experts believe that long-term stock prices will be difficult to rise without the support of performance.

[Anchor]
So, what kind of effort should Samsung Electronics make to increase its stock price?

[Reporter]
Experts believe that the most important thing is to gain investor confidence in improving performance.

The supply of HBM to Nvidia could be a good material.

There has been news that it has almost passed the quality test, but the supply decision has not yet been made.

In addition, Samsung Electronics is preparing for executive personnel appointments, and it seems important to produce results that the market will be satisfied with.

Let's listen to the interview in person.

[Yum Seung-hwan / Director of LS Securities: The performance is the most important thing for the stock price to continue to rise. It's called the Samsung Electronics crisis, and it's a system problem, and these things have not been solved yet. It is not yet known whether Samsung Electronics has just bought back its own shares and supplied them to Nvidia, and Samsung Electronics is going to announce its personnel appointments soon, so many executives may be replaced in that appointment, but it will bring more satisfactory results to the market.]

It has defended falling further below 50,000 won, but how much it will rise will only depend on whether Samsung Electronics restores its trust.