Foreigners continue to sell their shares of Samsung Electronics amid sluggish smartphone sales and China's economic slowdown.
According to Korea Exchange, foreign shares of Samsung Electronics currently account for 50.76 percent of the total. Their shares dropped to a 50 percent level on Sept. 15, the lowest since July of last year (50.97 percent).
The share value of South Korea’s largest smartphone maker hovers around 1.1 million won with a price book-value ratio of 1 time.
Industry watchers are keeping an eye on the selling trend as Samsung Electronics is not active in responding to the payback to shareholders and is IM (Information Technology and Mobile) sector is struggling from finding new growth engine amid the uncertain global financial environment.
"The market has long called on Samsung Electronics to change its policy on the payback to shareholders," one financial analyst said, adding, "The demand has been especially strong during the past one to two years, but Samsung has not shown any willingness to take measure for the change."
Considering that Apple, Intel and TSMC's total shareholder return is 45 percent on average, Samsung Electronics' stock valuation is quite low.
"Samsung Electronics’ corporate governance reform and inheritance are still uncertain. As low stock price is beneficial for raising the royal family's control, they will continue to maintain the uncertainty," one analyst said declining to be identified.
