After a sharp decline the previous day, Samsung Electronics and SK Hynix are showing strong gains in early trading. This rebound is attributed to improved investor sentiment following a rally in semiconductor stocks on the U.S. market overnight.
As of 9:37 a.m. on June 9, Samsung Electronics shares rose by 9,500 won (3.21%) to 305,000 won. At one point, the stock climbed to 312,000 won, briefly regaining the '310,000 won' mark.
Meanwhile, SK Hynix saw its shares increase by 122,000 won (6.38%) to 2,033,000 won. Both companies had also shown upward trends in pre-market trading.
The rebound in major domestic semiconductor stocks is seen as a reflection of the strength in U.S. semiconductor shares. Recent easing of geopolitical risks in the Middle East has led to a recovery in risk appetite among investors, particularly in technology and semiconductor sectors, prompting a wave of bargain hunting.
On June 8 (local time), the Philadelphia Semiconductor Index (SOX) rose by 5.61%. Notable individual gains included Micron Technology, which increased by 9.87%, Intel by 11.19%, and AMD by 5.14%, driving the overall sector's upward momentum.
Market analysts suggest that the influx of bargain buying in semiconductor stocks, which had recently undergone corrections, is rapidly restoring investor confidence. However, they caution that volatility may persist due to external factors such as upcoming U.S. inflation data and changes in the geopolitical landscape in the Middle East.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Thanks to the rebound in U.S. semiconductor stocks and the strength of KOSPI 200 night futures, we expect a recovery in the significant losses from the previous day, particularly among oversold leading stocks like semiconductors. It is also noteworthy that KOSPI has historically recorded positive returns on average after circuit breaker activations."
He added, "This recent correction is not fundamentally driven by factors such as a peak-out in semiconductor profits or loss of policy momentum, but rather by excessive market concentration. Therefore, the likelihood of a cascading drop that threatens the existing bullish trend is low."
* This article has been translated by AI.
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