June 18 (Bloomberg) -- Foreign investors were net buyers of Samsung Electronics Co. shares for the first time in eight days yesterday after the stock’s valuation fell to the lowest level since at least August 2007.
Foreigners bought a net 2.5 billion won ($2.2 million) worth of the company’s stock in Seoul trading, after selling more than 2 trillion won of shares from June 5 through June 14, according to data compiled by Bloomberg. Samsung traded for 6.1 times projected 12-month profit yesterday, compared with the benchmark Kospi index’s 9.4 times.
Morgan Stanley was one of three global banks and brokerages that cut its earnings forecasts for the company on June 10, citing lower-than-expected sales of its flagship Galaxy S4 phone. The stock, which makes up about 19 percent of the Kospi, gained 0.6 percent to 1.37 million won today, paring this month’s loss to 11 percent. The Kospi increased 0.6 percent.
“It’s not yet safe to say that foreigners have changed their stance, but the massive selloff has eased somewhat,” Park Moon Seo, an analyst at KTB Investment & Securities, said by phone from Seoul today.
Overseas funds were net sellers of $66 million of Korean stocks yesterday, extending a seven-day selloff to $3.3 billion since June 5. Foreigners have sold $6.72 billion of the nation’s shares this year, the most among 10 Asian markets tracked by Bloomberg.
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