Samsung Electronics and SK Hynix, South Korea's leading semiconductor companies, have seen their stock prices drop by 5% to 7% due to profit-taking and foreign selling. Following a recent surge, the valuation pressure and weakness in U.S. tech stocks and futures have dampened investor sentiment, causing SK Hynix to relinquish its position as the top market cap holder to Samsung Electronics just a day after achieving that status.
As of 1:29 PM on June 23, Samsung Electronics shares were trading at 333,500 won, down 20,000 won (5.66%) from the previous day. SK Hynix's stock fell to 2,698,000 won, a decrease of 22,100 won (7.57%).
The simultaneous decline of both companies has reversed their market capitalization rankings. Just the day before, SK Hynix had surpassed Samsung Electronics to become the first in market cap for common shares, but its larger drop today has pushed it back to second place, allowing Samsung Electronics to reclaim the top spot.
The downturn in semiconductor stocks is attributed to profit-taking amid heightened valuation pressures following a series of record highs. Additionally, the decline in U.S. tech stocks and futures has further weakened investor sentiment, leading to intensified selling by foreign investors, which has exacerbated the losses for both Samsung Electronics and SK Hynix.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "The significant drop in SK Hynix and Samsung Electronics, which were the top two in KOSPI market capitalization, is putting pressure on the index. The valuation burden on domestic large-cap semiconductor stocks, which have recently hit record highs, has increased, and aggressive selling from foreign investors is contributing to heightened volatility during trading hours."
* This article has been translated by AI.
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