Samsung Electronics and SK Hynix Stock Prices Soar... Foreign Investors Sweep Up Shares Relentlessly

[Asia Economy Reporter Lee Seon-ae] The stock prices of Samsung Electronics and SK Hynix soared rapidly, bringing relief to individual investors.

According to the Korea Exchange on the 12th, Samsung Electronics closed at 62,900 KRW, up 2,500 KRW (4.14%) from the previous trading day. During the session, it rose by 4.64% to reach as high as 63,200 KRW. The last time Samsung Electronics traded above the 63,000 KRW level intraday was on June 10 (intraday high of 64,400 KRW). SK Hynix also ended trading at 93,500 KRW, up 4.94%.

With the U.S. consumer price inflation slowing and expectations of a pause in interest rate hikes, the semiconductor sector surged, leading to a strong investment sentiment toward Samsung Electronics and SK Hynix, the representative domestic semiconductor stocks. Additionally, foreign investors continuously accumulated these two stocks, driving the price increases.

Seosangyoung, a researcher at Mirae Asset Securities, commented, "The rise in the U.S. semiconductor sector has driven the strength of related domestic stocks," adding, "The weak dollar and foreign investor demand are also positive factors."

Foreign investors' net buying of Samsung Electronics stands out. Since November, foreigners have purchased stocks worth 396 billion KRW. Institutions also bought about 417 billion KRW, playing a central role in supporting the '60,000 KRW Samsung Electronics' price level. In particular, foreigners appear to be using 'China Run' funds to buy Samsung Electronics at low prices. Since Chinese President Xi Jinping's third-term confirmation (October 23 to November 9), foreigners have net purchased over 1 trillion KRW worth of Samsung Electronics shares, making it the most bought stock during this period. The net purchase amount during this time reached 1,080.85 billion KRW. Along with Samsung Electronics, foreigners also scooped up SK Hynix, considered the leading semiconductor stock. From September 30, when the KOSPI hit its lowest point this year (2,134.77 points), to November 9, over 27 trading days, foreigners net purchased SK Hynix shares worth 818.8 billion KRW. The stock price, which had fallen just before breaking below 80,000 KRW, rose above 90,000 KRW, showing an upward trend.

Park Soyeon, head of the investment strategy team at Shin Young Securities, noted, "Foreigners net purchased nearly 5 trillion KRW worth of stocks last month, mostly in the electric and electronics sectors such as Samsung Electronics and SK Hynix."

Accordingly, the market evaluates that foreigners are focusing on so-called 'picking up bargains' by continuing to net buy Samsung Electronics and SK Hynix despite downward earnings forecasts, not missing the opportunity to buy at low prices.

[Image source=Yonhap News]

Although SK Hynix's earnings are expected to turn to a loss in the fourth quarter, leading securities firms to lower their target prices, some have surprisingly raised them. IBK Investment & Securities raised SK Hynix's target price from 100,000 KRW to 120,000 KRW.

Kim Unho, a researcher at IBK Investment & Securities, analyzed, "Although DRAM demand is expected to be weak, the price decline period will not last long due to supply restrictions by suppliers." He added, "The current stock price is in a range where the upside potential is greater than the downside risk," explaining, "Since stock prices have always rebounded during periods of supply reduction, there is sufficient short-term rebound momentum."

Advice was also given to consider increasing weight in Samsung Electronics. Kim Yangjae, a researcher at Daol Investment & Securities, said, "Samsung Electronics, which has market dominance and cost competitiveness, is expanding capital investment without production cuts despite the memory market slowdown," adding, "This is aimed at securing mid- to long-term business stability rather than restarting a chicken game, and we recommend increasing weight when stock prices weaken due to related concerns." He suggested buying in divided portions at low points during price corrections, expecting the fruits of proactive investment when the market recovers.

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