Samsung’s market value surged past $100-billion on Wednesday as its stock jumped 5,1%, putting it among Asia’s largest companies by market capitalisation.
The value of Samsung’s common stock rose to about 103-trillion won, or $103-billion, after its share price rose to a record high 699 000 won ($699) on Wednesday. The won’s strength against the US dollar also contributed to crossing the threshold.
Samsung, the world’s biggest manufacturer of memory chips, became the first in South Korea to achieve such size, and is more than twice as big by this measure as Japanese rival Sony, valued at about 4,7-trillion yen, or $41-billion.
The milestone puts Samsung among the region’s biggest companies by market capitalisation, but it still trails several corporate giants, including Toyota, which is valued at about 22-trillion yen ($190-billion).
Investors scooped up Samsung shares on anticipation of improved earnings during the fourth quarter and into the first quarter of this year, analysts said.
The company, the nation’s biggest, is also a leading maker of cellphone handsets and other consumer electronics including digital music players.
Consumer demand is moving toward gadgets that can do several things, such as cellphones that can also access the internet or play video clips, and Samsung seems to have anticipated that change in the evolving information technology market, analysts said.
”Current IT demand is moving toward multi-function,” said Chang-won Chung, a technology analyst at Daewoo Securities in Seoul. ”Samsung Electronics’ position is globally [the] best.”
Chung said improved profit margins for cellphone handsets as well as expected strong demand for products during the Chinese New Year, coming up later this month, are factors driving optimism for the company’s earnings outlook.
Samsung is scheduled to release its fourth-quarter earnings results on January 13.
According to the Korea Listed Companies Association, Samsung has about 147,3-million shares of common stock.
Boosting the company’s value in dollar terms was the South Korean won’s strength. The US dollar fell to 998,5 won on Wednesday, down from 1 005,4 won on Tuesday. – Sapa-AP