SK Hynix "Semiconductors, Follow Me"

Recovery Above 100,000 Won Followed by Uptrend
Foreigners Record Highest Net Buying This Month

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] SK Hynix has recently shown strength, breaking away from the correction triggered by concerns over the semiconductor industry outlook. It is leading the semiconductor recovery by showing relatively stronger performance compared to Samsung Electronics.

As of 9:05 AM on the 22nd, SK Hynix was trading at 118,000 KRW, up 6,500 KRW (5.83%) from the previous day. This is the highest level since August. SK Hynix, which had fallen below the 100,000 KRW mark earlier last month due to semiconductor industry concerns, recovered the 100,000 KRW level in late last month and has continued a steady upward trend this month, successfully rebounding.

SK Hynix is leading the recovery of semiconductor stocks by showing a much stronger performance than Samsung Electronics. SK Hynix has risen 8.25% from the beginning of this month until the day before. During the same period, Samsung Electronics rose only 2.01%.

The strength of SK Hynix was driven by foreign investors. Foreigners have been the largest net buyers of SK Hynix this month, purchasing shares every day except for one. Foreign investors have net bought SK Hynix shares worth 603.4 billion KRW this month.

Song Myungseop, a researcher at Hi Investment & Securities, said, "Assuming the economy does not reach a crisis situation in the future, SK Hynix’s previous low stock price appears to have undergone sufficient price adjustment," adding, "The current major issue is the deterioration of China’s economy and IT demand, but it is expected to begin improving with the Chinese government’s economic stimulus measures in the first quarter of next year, or the inventory reduction of memory semiconductors by customers, which started in the third quarter of this year, is likely to be completed by the first half of next year, so a trend reversal to an upward movement for SK Hynix may occur."

The decline in memory semiconductor prices seems to have already been sufficiently reflected in the stock price. Lee Seungwoo, a researcher at Eugene Investment & Securities, said, "Although memory prices continued to decline last week, domestic and overseas semiconductor stocks recorded a meaningful rise," adding, "Unless additional demand shock factors occur, the variable of memory price decline until the first half of next year does not seem to be a factor that will further pull down stock prices."

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