Samsung Electronics Stock Plummets Again Today... Long-Term Concerns More Than Short-Term

I just saw that Samsung Electronics' stock price is sharply falling again today, over 4%. The current price is 50,700 won.

It's pushing the price down from the high point of the early trading session.

I checked for related news, but instead of any special new information, the usual news about Samsung Electronics possibly lagging behind Hynix in the HBM business next year is circulating again.

On the other hand, there is news reporting that Samsung Electronics' stock price has reached a low price with a PBR of less than 1. Of course, this kind of headline is meant to encourage people to buy Samsung Electronics stock.

Looking at the Samsung Electronics chart, it seems to be approaching the 49,000 won price point, which I thought would act as a support line, preventing a sharp drop.

Depending on how the price moves in the remaining trading hours today, it could reach that price today or tomorrow. Foreign investors are really pushing it down fast.

I thought the Samsung Electronics stock price of 49,000 won would coincide with the KOSPI index in the low 2400s, but the KOSPI index is falling more sharply than expected. Looking at this, today's decline among other major market cap stocks seems more severe than yesterday.

At this rate, when Samsung reaches 49,000 won, the KOSPI index could fall to 2386 points, the low point during the sharp drop in early August.

Even with the decision to abolish the financial investment tax, the recent trend of the domestic stock market shows that it was never really related to the financial investment tax. Individuals were simply played by the vested interests who wanted to get rid of the financial investment tax using it as an excuse...

Rather, the continued selling of KOSPI and Samsung Electronics shares by foreign investors is a result of the deteriorating global export situation (with an atmosphere suggesting future protectionism), coupled with the expectation that domestic demand will also suffer due to the real estate slump.

The won-dollar exchange rate is currently around 1407 won, remaining relatively stable compared to the falling KOSPI index.

It seems to be temporarily stuck at the trend resistance level near 1410 won... It's a bit ambiguous whether this is good or bad in the short term, from the perspective of exchange rate resistance and stock price support.

Still, as Samsung Electronics is the top market cap representative stock, even if it might temporarily fall below 49,000 won for a day, I don't think it will plunge sharply. In the short term, a stock price of 49,000 won seems like a price range where a short-term rebound, a technical rebound, could be expected.

However, I'm not sure how many people are considering short-term trades on Samsung Electronics. If you're considering buying Samsung Electronics, you're likely looking at an investment horizon of at least several months to a year, or even several years, aren't you?

Thinking of buying Samsung Electronics short-term, within a month or two, might be understandable (though I wonder if we really need to touch the Korean stock market now)... Personally, in the long term, over several years, I think the possibility of seeing 20,000 won or 10,000 won before 100,000 won is higher for Samsung Electronics' stock price.

In other words, even if we see 100,000 won someday, it's likely that we'll see 10,000-20,000 won first, and 100,000 won much later... Of course, many people might not think that way.

And while the US market is doing well, some may think only the Korean market is like this, but rather than 'only the Korean market', I think it's reflecting it 'first'. Other national stock markets will follow later.