Samsung, Apple shares ‘decoupling’

The stock prices of Samsung Electronics and Apple, which used to move in similar patterns, have started to decouple.

The world’s two leading smartphone manufacturers have moved in an opposite direction since early June with Apple shares jumping about 5 percent with Samsung’s plunging about 9 percent.

The results can be seen unusual as the two companies’ stocks used to take a roller coast ride in similar patterns.

As they started to outperform their competitors and dominate the market together, their stock prices moved upward, although the two technology giants have been involved in a patent war for almost a year.

Their stocks also fell together temporarily on the negative factors that could affect handset sales amid the global recession.

Samsung and Apple accounted for 55 percent of global smartphone shipments in the first quarter and more than 90 percent of the market’s profits, according to recent statistics.

But the situation has turned different after the two are now competing for the position for the market leader. It simply means favorable factors to one can become unfavorable to another.

Many analysts attribute Samsung’s recent slump to foreign investors selling stock then using the proceeds to buy Apple shares ahead of the launch of the latest iPhone in October.

“It’s true that foreign investors took a long-short strategy by selling Samsung and buying Apple, especially ahead of the launch of the iPhone 5,” said Song Jong-ho, an analyst at KDB Daewoo Securities.

Samsung stocks have fallen for several weeks after a high for this year of 1,418,000 won on May 2, although they managed to recover some losses on Friday and Monday.

Apple shares hit their lowest mark of 530.12 on May 17 and have since soared, ending at 613.89 on July 9, the highest level in the past three months.

But many analysts say the disappointing results of Samsung’s stock are largely driven by investment sentiments in the local market, and have nothing to do with the company’s own problems.

“The recent slump of Samsung shares is more related to overall investment sentiments,” said Lee Se-cheol, an analyst at Meritz Securities. “We believe that Samsung shares are very attractive and they are on an upward trend due to their growing presence in the global mobile market.”

Other experts also believe that Samsung is being hit hard by the eurozone crisis as foreign investors whose portfolios depend on the firm are now shedding their investments in the Korean market.

“They are not just selling Samsung shares but Korean stocks,” said Seo Won-seok, analyst at Hyundai Securities. “But they happened to have a lot of Samsung shares.”

He said Samsung will slowly regain its losses because its earnings in the third and fourth quarters are expected to be better than the previous ones, which will help increase its share price.

“Given its expected stable earnings in the third and fourth quarters, its stock prices will be moving upward,” he said.

Many analysts also argue that it may be the best time to buy Samsung shares as they are close to their lowest level and will soon move upward in a stable manner.

“Its stock price will soon recover some losses and it will be a good chance to buy its shares now,” Song said. <The Korea Times/Kim Tae-jong>

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