Semiconductor Stocks Tumble as Market Pressure Mounts
In a surprising turn of events, leading semiconductor stocks such as Samsung Electronics and SK Hynix have experienced noticeable declines amid heightened market pressures. As of 10:25 a.m. on March 31, Samsung Electronics was trading at 58,800 won, marking a significant drop of 1,400 won (2.33 percent) from the previous closing.
Samsung Electronics’ Market Struggle
The day began with Samsung Electronics’ share price dipping to a challenging 59,500 won, which translates to a 1.16% fall from the previous day. This opening breach of the 60,000 won level signaled further instability as the stock continued to trend downward, at one point declining by a concerning 2.66% to 58,600 won.
SK Hynix Follows Suit
Simultaneously, SK Hynix mirrored this weakening trend, trading at 192,300 won, down 7,000 won (3.51%) from the day before. The stock opened with a 2.91% drop and struggled to regain its footing.
Broader Semiconductor Sector Affected
The challenges aren’t limited to these giants alone. Other major semiconductor-related stocks are also feeling the heat, with Korean semiconductor representatives showing sharp declines. Hanmi Semiconductor has been on a downward trend for seven consecutive trading days, a downturn that started when it peaked at 90,400 won on March 20.
Factors Behind the Decline
This widespread stock weakness can be traced back to the dramatic fall of the three major New York stock indices along with the Philadelphia Semiconductor Index on March 28, triggered by stagflation fears. These fears stemmed from worsening U.S. consumer sentiment, reduced spending, and persistent inflation levels.
Furthermore, the domestic market’s resumption of short selling has augmented downward pressure. According to 매일경제, Han Ji-young, a researcher at Kiwoom Securities, remarked, “The resumption of short sales sets off a shockwave through the index due to concentrated selling in industries like semiconductors and defense.”
Anticipating Market Volatility
With industries such as secondary batteries and biotechnology experiencing substantial loan balance growth last week, there is an apprehension regarding potential short selling targeting these sectors, which could lead to temporary volatility in supply and demand.
As the financial landscape evolves, stakeholders keenly monitor these movements, aware of the implications for future investment strategies.
