The Korea Herald

지나쌤

Retail investors' top 10 stocks log negative return rates

Market cap rankings of major companies change, while Samsung Electronics maintains top spot

By Im Eun-byel

Published : Dec. 18, 2022 - 15:30

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An electronic board displays the closing mark of South Korea's benchmark Kospi at the trading room of the Hana Bank headquarters in Seoul on Fridday. (Yonhap) An electronic board displays the closing mark of South Korea's benchmark Kospi at the trading room of the Hana Bank headquarters in Seoul on Fridday. (Yonhap)

Korea's top 10 most popular stocks among retail investors, including tech titan Samsung Electronics and internet giants Naver and Kakao recorded negative return rates this year, as shares end lower on growing recession fears.

The top 10 shares most bought by individual investors in Korea were Samsung Electronics, Naver, Kakao, preferred shares of Samsung Electronics, SK hynix, Doosan Enerbility, Kakao Bank, EcoPro BM, LG Electronics and Samsung Electro-Mechanics, Korea Exchange data showed. The shares all showed a negative return rate this year, plummeting 19.23 percent on average as of Friday's closing session.

Tech titan Samsung Electronics, the favorite pick among retail stock investors here, closed at 59,500 won ($45.42) on Friday, 7.9 percent lower than the average purchase price of 64,605 won this year.

The differentials between the closing price and the average purchase price for Naver and Kakao were minus 23.6 percent and minus 27.9 percent each.

On the other hand, five of the top 10 shares bought by foreign investors and institutional investors, showed positive return rates.

Top shares attained by foreigners that showed positive return rates were Samsung SDI which logged a 9.9 percent return rate, LG Chem at 7.8 percent, KT&G at 14.1 percent, Hanwha Solution at 13.4 percent and Classys at 3.9 percent.

For institutional investors, LG Energy Solution showed an average of a 4.6 percent return rate, Celltrion at 2.6 percent, Hanwha Solution at 13.3 percent and CS Wind at 20.1 percent and Samsung Biologics at 1.3 percent.

The average return rate for the top 10 shares bought by foreign investors were 1.42 percent, while it was minus 1.26 percent for institutional investors.

With the US Federal Reserve's string of interest rate hikes and fears over a global recession affecting the local stock market, the stock market capitalization rankings of major companies have changed, including the stock price plunge of Naver and Kakao.

Samsung Electronics maintained the top spot though its market value dropped from 467 trillion won from end-2021 to 355 trillion won as of Friday. LG Energy Solution came in second and SK hynix came in third.

IT companies experienced major losses. Naver, which came in at No. 3 last year, dropped to seventh place and Kakao, which came in at No. 5, dropped to ninth place.

Battery-related stocks performed well, with LG Energy Solution maintaining its spot as the No. 2 market cap since its stock market debut in January. Samsung SDI and battery material supplier LG Chem, placed fifth and sixth, respectively, similar to the end of 2021.