Retail investors cheer after an 8% surge... Samsung Electronics' margin debt tops 400 billion won for the first time

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[Financial News] Samsung Electronics closed at an all-time high on the 21st, and the stock's margin loan balance topped 400 billion won for the first time.
According to Koscom CHECK on the 21st, Samsung Electronics' margin balance stood at 406.82 billion won as of the previous day, setting a new record.
A margin loan balance refers to the amount investors have borrowed from securities firms to buy stocks but have not yet repaid. An increase in this figure indicates a rise in leveraged investing, or borrowing to invest.
Samsung Electronics' margin balance rose for nine consecutive trading days from the 8th through the 20th. During that period, the balance jumped by 90.31 billion won. The move may reflect fear of missing out, or FOMO.
Although stock price volatility widened ahead of the general strike announced by Samsung Electronics' labor union for the 21st, investors appear to have viewed the pullback as a buying opportunity.
Individual investors' net purchases of Samsung Electronics have surpassed 10 trillion won this month. According to the Korea Exchange (KRX), retail investors had bought a net 11.049 trillion won worth of Samsung Electronics shares as of the previous day.
After labor and management reached a tentative wage agreement on the evening of the previous day, the stock jumped more than 8% on the day and closed at a record high of 299,500 won.
Brokerages expect Samsung Electronics' rally to gain further momentum. Shinhan Securities raised its target price for Samsung Electronics to 550,000 won on the day, citing the easing of labor-related concerns.
Chae Min-sook, a researcher at Korea Investment & Securities, also raised her target price for Samsung Electronics to 570,000 won and said, "Considering that Samsung Electronics' stock had been held back compared with rivals because of strike risks, its upside momentum after the risk is resolved will likely be even stronger than that of its competitors."
nodelay@fnnews.com Park Ji-yeon Reporter