Samsung, Tesla Shares Lose Luster for Small Investors
19 June, 2021
Small investors' passionate romance with Samsung Electronics stocks is cooling quickly, and their second favorite Tesla too is losing its luster. So popular was Samsung at one point that fully 40 percent of most new retail investors bought the blue-chip stock, but up to now this month they have already been selling it.
Based on the Korea Securities Depository, Tesla, that was the most-bought foreign stock among Korean retail investors from last October to April this year fell to second place in May and fourth place this month.
Retail investors bought W50.7 trillion worth of stocks on the KOSPI up to now this year, surpassing the full total for your of this past year (US$1=W1,135). From January to May, Samsung shares were a common investment, but because the beginning of the month they have sold W110 billion worth of them.
Instead, they fell on steelmaker POSCO with the same rapacious hunger. Samsung's share price has been practically flat from W81,000 in late 2020 to W81,800 on Wednesday after peaking at W96,800 in mid-January.
Samsung Securities analyst Chung Myung-ji said, "It would appear that retail investors are available Samsung shares, which are not rising very much in a bullish overall currency markets that's setting new records."
Among overseas stocks, Tesla was overtaken by Amazon in May and has now been surpassed by Airbnb, Apple and AMC Entertainment. Tesla's stocks have already been sluggish at around US$600 for quite a while now.
Korean investors bought $13.7 billion worth of foreign stocks up to now this year, which is the same as 69.6 percent of last year's total. Their U.S. stock transactions totaled $180.96 billion up to now this year, surpassing the complete of last year's, and Tesla epitomized the craze. But more recently they sold more Tesla stocks than they bought.
Airbnb, by contrast, isn't that expensive, trading at around $149 per share after surpassing $200 earlier this year, but investors are betting that it'll grow as international travel resumes and the pandemic eases.
Theater chain operator AMC Entertainment is known as a "meme stock," which is popular purely because it has been trending on social media. Most AMC Entertainment stockholders are seeking short-term gains, however, many appear to be in it for the long term.
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