[MarketING] Why Did Samjeon and Hainikseu Rise Over 1% Despite Micron's Deficit?

[Asia Economy Reporter Song Hwajeong] Samsung Electronics and SK Hynix both closed the day with gains in the 1% range. Although Micron reported a loss in the fourth quarter, the outlook for improved profits starting in the second half of next year appears to have somewhat boosted investment sentiment in the semiconductor industry.

Samsung Electronics and SK Hynix rebound together after 3 days

On the 22nd, Samsung Electronics closed at 59,100 KRW, up 1,100 KRW (1.9%) from the previous day. It rebounded after 3 days and regained the 59,000 KRW level. SK Hynix ended trading at 79,200 KRW, up 1.54%. SK Hynix also rebounded after 3 days, rising back to the 79,000 KRW range.

Although Micron announced disappointing results, its forecast that the market conditions will improve from the second half of next year is interpreted as having somewhat thawed the frozen semiconductor investment sentiment.

Micron announced on the 21st (local time) after the U.S. stock market closed that its fiscal first quarter (September to November) revenue fell 47% year-on-year to 4.1 billion USD. This figure was below the consensus (market forecast) of 4.14 billion USD. Along with this, it recorded an operating loss of 100 million USD, turning to a deficit. This is the first time in 7 years that Micron has posted a quarterly operating loss. After the earnings announcement, Micron's after-hours stock price fell about 2%.

Kim Seokhwan, a researcher at Mirae Asset Securities, analyzed, "Although Micron announced results below expectations, the forecast of inventory improvement and sales and profit growth from the second half of next year has improved investment sentiment in the industry." The Philadelphia Semiconductor Index also rose 2.36% the previous day.

Institutions led the strong performance of Samsung Electronics and SK Hynix. On that day, institutions bought the most Samsung Electronics shares, purchasing 148.074 billion KRW worth. SK Hynix followed with 40.844 billion KRW.

However, the fourth-quarter earnings announcements for Samsung Electronics and SK Hynix are still pending, and it is expected to take time for the semiconductor market conditions to improve. Kim Yangjae, a researcher at Daol Investment & Securities, said, "Considering Micron's results, Samsung Electronics and SK Hynix's fourth-quarter earnings are also expected to fall short of consensus," adding, "The direction of memory industry stock prices can be gauged depending on whether additional production cuts are commented on in the earnings announcements of the two companies in late January."

KOSPI and KOSDAQ close up over 1%... KOSPI recovers to 2,340 level

[Image source=Yonhap News]

On that day, both the KOSPI and KOSDAQ closed up more than 1%. The KOSPI succeeded in rebounding after 6 days and recovered the 2,350 level.

The KOSPI closed at 2,356.73, up 27.78 points (1.19%) from the previous day. It was a rebound after 6 days.

Institutions pushed the KOSPI above the 2,350 level by net buying 585.4 billion KRW worth. Foreigners continued to sell for the fourth consecutive trading day with net sales of 4.4 billion KRW, but the scale of sales significantly decreased. Individuals realized profits by net selling 565.8 billion KRW worth amid the index rise.

Among the top 10 by market capitalization, only LG Energy Solution showed weakness, falling 1.15%, while the rest all showed gains. In particular, Naver (NAVER) and Kia showed strong gains in the 2% range.

By industry, most sector indices showed strength, including transportation and warehousing (3.19%), services (1.81%), transportation equipment (1.77%), and securities (1.57%).

The KOSDAQ closed at 715.02, up 1.32%, continuing its upward trend for the second consecutive day. In the KOSDAQ market, foreigners and institutions led the index rise by net buying 73.6 billion KRW and 175.7 billion KRW worth, respectively. Individuals net sold 238.5 billion KRW worth.

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