The number of small shareholders in the Korean tech giant, Samsung has exceeded 5 million after huge stock investment by local investors. This was according to data gathered on Monday.
According to official data released by Samsung, about 5.18 million small investors now invest in the top company as of the end of September, triple the number recorded in the same period last year. The exponential increase in the number of investors was due to the company’s status as one of the world’s leading companies in smart technologies, including refrigerators, televisions, laptops, chips, mobile phones, etc.
A considerable amount of local and retail investors had bought into Samsung Electronics this year despite foreign holders relinquishing their holdings in the most coveted stock in Korea. In the first nine months of 2021, retail investors bought a net $27.9 billion or 32.9 trillion South Korean won worth of Samsung stocks.
The high number of investors from January to September 2021 alludes to a high level of confidence in the company’s present performance, as well as the company’s potential to perform even better in the future (either near or distant). The show of confidence in the company stock is likely to motivate a new wave of investors, who are convinced by the mass action taken concerning the Samsung stock.
According to discussions by analysts, investors may have been drawn to the country’s most valuable company, in the middle of a surge in market liquidity and tougher government regulations on the housing market. The recent surge in the number of small investors can be said to be an indication of greater standing in Samsung, the world’s top smartphone and memory chip maker.
However, this month they sold a net 486 billion South Korean won ($412 billion) worth of Samsung Electronics stock due to a slump in the company’s stock price.