From BigGo Finance · BigGo Finance · · 2m
Foreign investors dump $8.4 billion in Korean chip stocks
Samsung and SK Hynix hit worst weekly drops since 2008 as foreign investors sell.
In brief
Samsung and SK Hynix hit worst weekly drops since 2008 as foreign investors sell. Foreign investors sold $8.4 billion in Korean chip stocks, causing Samsung and SK Hynix to drop 17.8% and 24.3% respectively, their biggest weekly declines since the 2008 financial crisis. Originally reported by BigGo Finance.
Foreign investors dump $8.4 billion
Foreign investors net sold 11.2068 trillion won (approximately $8.4 billion) on the KOSPI last week.
Samsung and SK Hynix hit worst weekly drops
Samsung fell 17.8% to 215,500 won (approximately $160) and SK Hynix plunged 24.3% to 1.272 million won (approximately $950).
Biggest weekly declines since 2008
Samsung's weekly drop is the biggest since the fourth week of October 2008 (-19.3%) and SK Hynix's is the steepest since the third week of November 2008 (-31.9%).
Foreign ownership at lowest levels
Samsung's foreign ownership fell to 45.98% (lowest since July 2009) and SK Hynix's to 48.85% (lowest since December 2.2021).
U.S.-sparked AI bubble fears
U.S.-sparked AI bubble theories and semiconductor industry warning lights drove the plunge.
China's CXMT closing tech gap
China's ChangXin Memory Technologies (CXMT) closing the technology gap fueled market fear.
SK Hynix duplicate-listing dispute
SK Hynix's U.S. subsidiary Solidigm pushing for an IPO caused a duplicate-listing controversy.
Brokers call it an excessive correction
KB Securities says the KOSPI's price-to-earnings ratio of about 8x puts it in historically undervalued territory.
Kim Dong-won's view
Kim Dong-won, head of KB Securities' research division, called the plunge an excessive correction caused by shriveled investor sentiment.
Lee Jae-won's view
Lee Jae-won, an analyst at Yuanta Securities, said the current extreme oversold condition is grounds for a short-term rebound.
Skeptics warn of prolonged volatility
Analysts warn that market concerns over China's technology catch-up may not resolve quickly.
Key to rebound: earnings and flows
U.S. tech earnings releases and Bank of Korea's rate decision are expected to test the resilience of semiconductor giants.
Market reaction to AI investment
TSMC and ASML report no signs of slowing AI semiconductor demand and strong market outlook.
What happens next
Market attention shifts to U.S. tech earnings and Bank of Korea's rate decision on Oct. 22.
The big picture
Foreign investors sold $8.4 billion in Korean chip stocks, causing Samsung and SK Hynix to drop 17.8% and 24.3% respectively, their biggest weekly declines since the 2008 financial crisis.
