Samsung group shares led by Samsung Electronics are showing strength. The market is interpreting this as investor sentiment recovering quickly as Samsung Electronics posts solid results and recent Middle East war risks move into an easing phase.

According to the Korea Exchange, Samsung Electronics rose 3.08 percent on April 16 from the previous session to 217,500 won. Samsung Electro-Mechanics gained 4.07 percent and Samsung SDI rose 1.59 percent. They are among the top performers among major listed Samsung group companies since the start of the year.

Samsung Electronics announced preliminary first-quarter results on April 6. On a consolidated basis, revenue was 133 trillion won and operating profit was 5.72 trillion won, each at the highest level on record for a quarter.

With demand for artificial intelligence semiconductors increasing and the memory market improving, Samsung Electronics’ strong results are seen as leading to a re-rating of valuations across Samsung group affiliates, analysts say.

Middle East factors that have recently weighed on the stock market are also showing signs of easing. After U.S. President Donald Trump mentioned the possibility of ending the war, expectations for easing Middle East risks spread, and foreign funds flowed in.

Within the Samsung group, stocks that have risen sharply since the start of the year are drawing particular attention.

According to the Korea Exchange, gains since the start of the year were tallied at 136.67 percent for Samsung Electro-Mechanics, 116.77 percent for Samsung E&A, 81.90 percent for Samsung SDI and 69.07 percent for Samsung Electronics. The average gain since the start of the year for 14 major listed Samsung group companies was 40.96 percent.

Broad strength across the group also led to a rise in market capitalisation. As of that day, the market capitalisation of 18 listed Samsung group companies was tallied at 1,646.35 trillion won. That corresponds to 32.24 percent of the KOSPI market capitalisation. Samsung Electronics’ share of the Samsung group’s total market capitalisation was about 78.4 percent.

Group stock ETFs also posted gains over the same period. The rise since the start of the year for ETFs holding major Samsung group stocks was 52.06 percent for TIGER Samsung Group, 48.19 percent for ACE Samsung Group Sector-Weighted, 48.01 percent for KODEX Samsung Group, 44.66 percent for KODEX Samsung Group Value and 34.01 percent for ACE Samsung Group Equal-Weighted.

Brokerages are repeatedly raising their earnings forecasts for Samsung Electronics. Hyundai Motor Securities raised its annual operating profit forecast for Samsung Electronics to 350 trillion won from 239 trillion won, DB Financial Investment to 335 trillion won from 224 trillion won, and NH Investment & Securities to 309 trillion won from 216 trillion won.

An official at a securities firm said Samsung Electronics’ strong results are leading a re-rating across group stocks, while easing Middle East risks are also helping improve investor sentiment. The official said expectations for AI-beneficiary affiliates such as Samsung Electro-Mechanics are adding to the move, and the strength in Samsung group shares could continue for the time being.