Foreign investors reduce their share of Samsung stock to 17-year low

Foreign investors have trimmed their exposure to Samsung Electronics stock over the past year, with their share now standing at a 17-year low.

That's despite the company's stock hitting record highs recently, on the back of stellar performance largely delivered by its semiconductor division, which is reaping the benefits of the current memory super cycle.

Samsung's stock has hit record highs recently

The latest data from the Korea Exchange reveals that the foreign equity in Samsung Electronics stock has come down to around 46%. It now sits at the lowest level since 2009.

As per the detailed figures revealed, the foreigners' shareholding ratio is now at 46.37%, which is the lowest level since July 2009. The decline has been considerable this year, as the share was at 52.4% earlier this year when the Korean market was rising. The share declined below 50% in March and reduced further to 48% by May.

It's unclear why foreign investors are reducing their exposure to Samsung Electronics' stock, even as the company is projected to make over $80 billion in profit for this quarter, with profits projected to be even higher in the coming quarters as it takes full advantage of the astronomical rise in memory chip prices.

The considerable volatility in the Korean market earlier this year, and a broader rebalancing of the AI trade, may have contributed to this. Nevertheless, domestic demand for the company's shares remains high, largely due to the stock's robust performance over the past year.