Stocks & BondsSamsung Electronics shares hit all-time high
Samsung Electronics’ stock closed at an all-time high of 1,772,000 won (US$1,514) on Dec. 7, beating the previous record of 1,760,000 won set on the previous day.
The price soared to 1,774,000 won in the early trading.
The upward trend that started early this year is gaining momentum recently as expectations are growing that the firm will split into holding and operating firms as part of Samsung Group’s ongoing business restructuring ahead of the leadership transfer from the ailing Samsung patriarch Lee Kun-hee to his only son, Samsung Electronics Vice Chairman Lee Jae-yong.
Setting up a holding unit is considered a crucial step for the junior Lee and the owner family to wield more power at the flagship electronics unit and other affiliates overall.
Some analysts forecast that the stock price could top 2 million won thanks to improved earnings in the fourth quarter.
“Samsung’s revenue in the fourth quarter will likely increase 8.8 percent from the previous quarter to 52.04 trillion won with the operating profit standing at 8.31 trillion won, up 59.9 percent during the same period,” said Lee Jeong, an analyst from Yujin Investment & Securities.
A ruling by the US Supreme Court on Dec. 7, which sided with Samsung in its long-time patent feud with Apple, is also expected to further boost to the shares.
The court overturned an appeals court ruling that the Korean company had to pay US$399 million in penalty to the California-based firm for copying iPhone designs, sending the case back to the US Court of Appeals for the Federal Circuit in Washington to decide the amount Samsung has to pay.