Seoul [South Korea], July 21 (ANI): Stock prices of South Korea’s leading chipmaker Samsung Electronics and crosstown rival SK Hynix have witnessed different trajectories, pricing in contrasting outlooks for their business prospects, as reported by the Korean Herald.
On Friday, Samsung Electronics closed at 67,100 won (USD 48.15), reaching its highest price this year. Meanwhile, SK Hynix ended the day at 269,000 won (USD 193.30), down more than 10 percent from its 52-week high of 306,500 won (USD 220.24) on July 11.
These current movements are opposite of what these market chip-giants witnessed in the first half of 2024.
Till July 11, SK Hynix shares rose over 50 per cent year-to-date, more than doubling Samsung Electronics’ 25 per cent gain during the same period.
Due to renewed investor optimism particularly from foreign investors, Samsung Electronics experienced a rise in its stock performance.
So far this month, offshore investors have net purchased 1.87 trillion-won worth of Samsung Electronics shares, which led to a rise in foreign ownership to 50.08 percent as of Friday.
Foreign investors significantly increased their purchases of Samsung Electronics shares, buying a net 922 billion won between Thursday and Friday. This surge was driven by the Supreme Court’s decision on Thursday to acquit Lee Jae-yong, the company’s chief, resolving his long-standing legal issues.
“The Supreme Court’s final ruling on Chair Lee Jae-yong added to expectations that Samsung Electronics will gain renewed momentum in driving forward its business initiatives,” Shinhan Securities analyst Kang Jin Hyeok said.
On the flip side, SK hynix shares declined Thursday after Goldman Sachs downgraded the chipmaker’s rating to “neutral” from “buy” for the first time in over three years. The Goldman Sachs cited concerns that advancing competitors could pressure its market position.
Following the report, SK hynix’ share price fell as much as 8.8 per cent during the day, wiping out approximately 19.3 trillion won in market capitalization. (ANI)
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