South Korean Chipmakers Bounce Back: Samsung & SK hynix Stocks Rebound as Market Concerns Ease

Samsung Electronics and SK hynix stocks rebounded as the Kospi index recovered, relieving market concerns. The stocks saw an upturn after significant losses, with improved sentiment following gains in U.S. markets. The recent volatility is attributed to liquidity flows rather than corporate fundamentals, analysts suggest.

In a swift turnaround, South Korean tech giants Samsung Electronics Co. and SK hynix Inc. observed a notable uptick in their stock prices early Monday. This recovery aligns with a broader rebound in the Kospi index, as reported by Pulse via Maeil Business News Korea.

The easing of market worries in the United States appears to have bolstered investor confidence, prompting a revival following last week's sharp declines. As of 9:18 a.m. on Monday, Samsung Electronics shares climbed 3.06 percent to 97,700 won (USD 66.41), while SK hynix shares increased 1.54 percent to 529,000 won. Experts indicate investors are capitalizing on discounted purchase opportunities, viewing recent sell-offs as excessive.

Contributing to the positive sentiment, all three major indices on the New York Stock Exchange ended Friday on a high note. The Dow Jones Industrial Average rose by 1.08 percent, alongside gains of 0.98 percent and 0.88 percent for the S&P 500 and Nasdaq Composite indices, respectively. Concerns about a potential December interest-rate cut by the Federal Reserve have cooled, further boosting market confidence.

Despite the recovery, apprehensions about an artificial intelligence bubble tempered additional gains. However, industry insiders argue current market volatility stems more from fluctuating liquidity than from changes in corporate fundamentals. Lee Kyung-min, analyst at Daishin Securities Co., advised that a buy-on-dips strategy remains effective amid short-term volatility spikes.

Elsewhere, Samyang Biopharm Corp., a subsidiary of Samyang Group, marked a significant stock surge, reaching the upper trading limit on its Kospi debut Monday. Post spin-off, Samyang Biopharm shares soared to 30,200 won, up nearly 30 percent from its initial public offering price. The spin-off involved a pure split, offering shareholders in Samyang Holdings stakes in both old and newly established companies.

(With inputs from agencies.)