Samsung Electronics shares hit all-time high on recovery hopes

SEOUL, Jan. 9 (Yonhap) -- Samsung Electronics shares hit a record high Thursday on expectations of a faster-than-expected recovery in global chip demand and prices.

The world's largest chipmaker closed at 58,600 won (US$50.53), up 3.17 percent from the previous session's close.

The adjusted stock price is the tech giant's highest since it was listed on the Seoul bourse in 1975. The previous record was 57,220 won on Nov. 1, 2017.

Samsung Electronics' preferred stocks jumped 3.64 percent to a yearly high of 48,400 won.

The stock rally came amid fast-spreading optimism that the company's earnings will improve this year on the back of a recovery in the global chipmaking sector and a low base effect after bottoming out in the fourth quarter of last year.

On Wednesday, Samsung Electronics estimated its fourth-quarter operating income at 7.1 trillion won, down 34.26 percent from a year earlier but well above the median market estimate of 6.5 trillion won.

"The profitability in Samsung's memory chip business has shown a faster recovery than expected," said Daeshin Securities analyst Lee Soo-bin.

Lee estimated Samsung's annual operating profit this year would reach 39.3 trillion won, up 42 percent from the previous year's estimate of 27.7 trillion won.

jwc@yna.co.kr
(END)