[Weekly HOT Stocks] SK Hynix, Individuals Continue to 'Buy' Despite Falling Stock Price

On the 20th, stock price fell to 71,800 won, losing the 2nd place in market capitalization

[Asia Economy Reporter Kum Boryeong] Although SK Hynix's stock price showed a continuous decline for 18 to 20 consecutive days during the week, individual investors showed great interest by purchasing about 400 billion KRW worth of SK Hynix shares.

According to the Korea Exchange on the 22nd, SK Hynix closed at 74,500 KRW on the 21st, up 3.76% (2,700 KRW) from the previous day.

SK Hynix's stock price recorded a downward trend over three trading days from the 18th to the 20th. The closing price, which was 80,200 KRW on the 14th, dropped to 78,100 KRW on the 18th, 75,000 KRW on the 19th, and further down to 71,800 KRW on the 20th.

Due to the stock price decline, SK Hynix temporarily lost its position as the second-largest market capitalization to Samsung Biologics. On the 20th, SK Hynix recorded a market cap of 52.2706 trillion KRW, falling behind Samsung Biologics (52.535 trillion KRW). However, on the 21st, the stock price rose by over 3%, reclaiming the second spot in market capitalization.

Individual investors focused on buying SK Hynix shares despite the price drop. SK Hynix ranked first among the top stocks for net purchases by individual investors from the 18th to the 20th. During this period, individual investors net purchased SK Hynix shares worth 476.3 billion KRW.

The decline in SK Hynix's stock price is due to expectations that the third-quarter market conditions will be weaker than anticipated. Shinhan Financial Investment estimated SK Hynix's third-quarter sales at 7.88 trillion KRW and operating profit at 1.2 trillion KRW, which are decreases of 8.5% and 38.3%, respectively, compared to the second quarter.

Researcher Choi Doyeon of Shinhan Financial Investment explained, "Price negotiations between server companies and manufacturers have been tough, and shipments have not been smooth. Due to macro demand slowdown, downstream companies are shifting inventory burdens to manufacturers. The decline in DRAM prices in the third quarter is expected to be larger than anticipated."

Researcher Choi added, "We expect stock price increases driven by momentum (shipment recovery) in September to October, and fixed price increases in the first half of next year. It seems more time is needed to confirm the market recovery."

This content was produced with the assistance of AI translation services.