Share price of Samsung Electronics Co. hit its highest point ever of 1.18 million won per share during trading Friday on strong foreign buying as its Japanese rival Elpida Memory Inc. teeters on the brink of collapse.

Samsung Electronics’ share price closed at 1.176 million won per share Friday, up 3.61 percent from the previous day. 

Market analysts attributed Samsung Electronics’ stock price rally to the expected separation of its liquefied crystal display business, Elpida’s financial troubles and the hike in price of dynamic random access memory chips.

Foreign investors bought more than 100,000 shares in Samsung Electronics on Friday. Orders flooded from foreign investment banks such as Morgan Stanley, Citigroup, UBS and Nomura Securities.

“Japan is unlikely to give up on Elpida, which holds a 12-percent DRAM market share, but as the discussions between Elpida and its creditors continue, Samsung Electronics’ shares can rise further,” said Lim Dol-yi, a researcher at Solomon Investment and Securities.

Elpida said Tuesday it sees uncertainty over remaining in business as it wasn’t able to reach a deal with the Japanese government and its main lenders to get financing for debt due in April.

On Wednesday, Samsung Electronics’ share price jumped 5.09 percent to 1.135 million won at market close after the chipmaker said it was considering spinning off its LCD business. Samsung is reportedly expected to complete the spin-off in April.

Samsung’s LCD division is estimated to have posted more than 200 billion won in losses in the fourth quarter of last year.

By Kim So-hyun (sophie@heraldcorp.com)