Broker sees Samsung, Nokia link

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Broker sees Samsung, Nokia link

Investors interested in buying Samsung Electronics shares may need to first check out the movement of share prices of Nokia, according to recent research. Dongwon Securities released a report yesterday to the effect that Samsung Electronics’ share price shows a pattern of movement similar to that of Nokia, the Finnish cell phone maker with the largest market share in the world. The prices do not track those of semiconductor companies like Intel, the brokerage said. “Since the beginning of this year, the share prices of Intel and TSMC, a Taiwanese semiconductor company, have been declining, while those of Nokia and Samsung Electronics have been steadily increasing,” said Kim Se-jung, a researcher at Dongwon Securities. “As the share of cell phone sales in the revenues of Samsung Electronics has risen, so has its share prices been moving in tandem with those of other mobile handset makers rather than semiconductor companies.” Semiconductor business made up 38 percent of Samsung Electronics’ revenues in 2000. That share grew to 41 percent last year. But during the same period, the importance of mobile handsets in the company’s revenues doubled from 15 to 29 percent. Intel’s share prices skyrocketed by more than 100 percent last year as the world economy showed signs of recovery and the firm’s information technology revenues improved. Since the beginning of this year, Intel has lost 15 percent of its value after cutting prices of its semiconductor chips during the slow season of January. TSMC’s share price has dropped by 8 percent since March 10. But riding on the bright performance outlook in the first quarter of this year, Nokia’s shares have risen 24 percent in value this year. Samsung’s shares showed a similar movement; they are up 20 percent so far this year, Mr. Kim added. by Kim Jun-hyun
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