'Foreign Sell-Off Bomb' Semiconductor, How Far Will the Sharp Drop Go?..."Short-Term Rebound in Fall"

[Asia Economy Reporter Ji Yeon-jin] Samsung Electronics recorded its second largest single-day drop this year on the 13th. As foreign investors continued their massive sell-offs, the stock price fell to its lowest level of the year, pulling the KOSPI index below 3200.

According to the Korea Exchange on the 13th, Samsung Electronics recorded 74,100 KRW during the day, down 3.71% from the previous day. This is the lowest stock price this year and the largest drop of the year. SK Hynix also opened at 99,600 KRW, down 0.9%, reducing its losses but continuing a seven-day consecutive decline.

The sharp decline in these semiconductor stocks was driven by foreign investors' continued massive sell-offs amid concerns over the slowdown in the memory semiconductor market. From the 5th to the previous day, foreign investors sold more than 6 trillion KRW worth of Samsung Electronics and SK Hynix shares. During this period, Samsung Electronics fell 7.12%, and SK Hynix dropped 16.94%. The combined market capitalization of the two companies evaporated by 45 trillion KRW over the week.

Foreign investors are gradually withdrawing from the domestic stock market due to factors such as improved U.S. employment indicators, expectations of a shift in the Federal Reserve's monetary policy from easing due to soaring inflation, and the Chinese government's increased regulations on companies. Foreign investors have net sold 4.5403 trillion KRW over the past four trading days, withdrawing 4.447 trillion KRW from the KOSPI alone. Institutions have also joined in, selling 1.7034 trillion KRW in the KOSPI from the 6th to the 11th.

However, securities firms predict that the semiconductor sector may see a rebound opportunity around the end of this month. Although concerns about the market will continue for the time being due to the continued decline in DRAM prices until January next year, short-term rebounds have appeared even during past downturn cycles. Eun Taek Lee, a researcher at KB Investment & Securities, explained, "At the current price levels, it is more effective to consider increasing short-term exposure," adding, "Rebounds often occur even during down cycles, and although there are no major positive factors such as supply bottleneck resolution, won depreciation, or foreign investor demand around this fall, when the stock price enters a neglected phase, these factors can have an impact."

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