Samsung and SK hynix claw back AI-debt losses, then slip again

Samsung Electronics and SK hynix started Monday, Oct 19 with steep losses in Seoul and then won most of them back. Both stocks were down about 6% early in the session, Seoul Economic Daily reported at 08:25 KST. The outlet linked the drop to worries over AI-related debt that had shaken Wall Street.

By 10:28 KST, Seoul Economic Daily reported, the two stocks had narrowed their declines as foreign and institutional investors stepped in with purchases. SK hynix ended the day at 1,277,000 won, up 0.39% from its Oct 16 close of 1,272,000 won. The KOSPI gained 1.76% to 5,768.01. Across all KOSPI shares, foreign investors made net purchases of 96.2 billion won (about US$72 million) that day.

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The rebound faded by Tuesday

The recovery did not carry into the next session. On Oct 20 SK hynix dropped 4.23% to 1,223,000 won, or US$920.86 at 1,328.1 won per dollar. Over the two sessions from its Oct 16 close, the stock lost 3.85% in won and 3.61% in dollars.

Samsung Electronics closed Oct 20 at 211,500 won (US$159.25). That was 1.86% below its Oct 16 close of 215,500 won.

The wider market turned as well. The KOSPI fell 3.73% on Oct 20 to 5,552.74, more than erasing Monday’s gain. Foreign investors’ net selling across all KOSPI shares reached 538.8 billion won (about US$406 million) that day, a market-wide figure. Our explainer shows how foreign flows move the KOSPI.

A month of heavy losses for two index giants

The swings came on top of a deep slide, including what were the two stocks’ worst week since 2008. From Sept 23 to Oct 20, SK hynix lost 34.32% in won and 32.82% in dollars. Samsung Electronics fell 25.92% in won and 24.23% in dollars over the same stretch.

That weighs on Korea’s benchmark. On Oct 20 SK hynix was worth about 893.4 trillion won, or 21.17% of the total market value of the KOSPI 200. It was down 15.25% over five sessions and 30.47% over 20 sessions.

Pressure showed up in Japan too. On Oct 19, Seoul Economic Daily and The Japan Times reported that shares of memory maker Kioxia were being weighed down by margin trading, in which investors borrow money to purchase shares, that had turned against them. Tokyo publishes margin balance data for the stock.

Earnings calls next week

SK hynix holds its third-quarter earnings conference call on Oct 28 at 09:00 KST. Samsung Electronics follows on Oct 29 at 10:00 KST.

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Information only, not investment advice.