U.S. semiconductor stocks have plummeted, raising questions about whether the KOSPI, which fell over 10% the previous day, can rebound. Market participants are closely watching SK Hynix's second-quarter earnings and the outlook presented during its conference call as key indicators for potential bargain buying.
On July 28, the Nasdaq Composite Index, which is heavily weighted with technology stocks, closed down 0.22% on the New York Stock Exchange. Semiconductor stocks continued to struggle, with Micron down 8.85%, AMD down 8.15%, Intel down 5.86%, Qualcomm down 4.21%, and Western Digital down 6.91%. The Philadelphia Semiconductor Index fell 4.49%, marking its fourth consecutive day of decline.
Following the sharp drop in the domestic market, analysts suggest that the KOSPI may have entered an oversold territory, leading to speculation about a potential rebound driven by bargain hunters. According to the Korea Exchange, the KOSPI closed at 6023.66, down 732.09 points (10.84%) from the previous trading day.
However, given the ongoing weakness in U.S. semiconductor stocks, it may be challenging for investor sentiment toward the domestic semiconductor sector to recover quickly. As of 8:37 a.m., shares of Samsung Electronics were down 1.8%, while SK Hynix fell 2.7% in pre-market trading on Next Trade.
The market is particularly focused on SK Hynix's second-quarter earnings report released today. The company announced revenues of 79.3187 trillion won and an operating profit of 60.5426 trillion won for the second quarter, both record highs for a single quarter, representing increases of 256.8% and 557.2%, respectively, compared to the same period last year.
Despite these record results, they fell short of market expectations. According to financial information provider FnGuide, the consensus forecast was for revenues of 83.9194 trillion won and operating profits of 64.6941 trillion won, with actual results slightly below these figures.
Han Ji-young, a researcher at Kiwoom Securities, noted, "Given the recent adjustments, there has been a downward revision in performance expectations. Therefore, it is essential to pay attention to the supply outlook for DRAM and NAND during the conference call, as well as the specifics of long-term supply agreements (LTA)."
* This article has been translated by AI.
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