Samsung Electronics and SK hynix. Yonhap News
Short-sellers are moving in opposite directions on Samsung Electronics (005930.KS) and SK hynix (000660.KS) following a record rebound in the two chipmakers’ shares in late July. Bearish bets on Samsung have grown, while positions against SK hynix have been sharply cut.
Samsung’s net short-selling balance stood at 1.48 trillion won ($1.07 billion) as of the 5th, up 33.0%, or 367.5 billion won, from 1.11 trillion won on the 31st of last month, according to the Korea Exchange. The increase, recorded over just three trading sessions, pushed Samsung past LG Energy Solution, Hanmi Semiconductor and Hyundai Motor to the top of the main board’s net short-selling rankings.
Over the same period, SK hynix’s balance fell 66.7%, or 48 billion won, from 72 billion won to 24 billion won, dropping the stock to 100th from 46th. The gap between the two companies’ net short-selling balances widened to 61.8 times from 15.5 times.
Net short-selling balance is the amount left after investors sell borrowed shares. A rising balance typically signals that positions betting on future price declines are building up in the market. Samsung’s net short volume also rose 41.9%, from 4.239 million shares to 6.017 million shares, leaving both its volume and balance at the highest levels this year. SK hynix, by contrast, saw its short volume drop 66.7%, from 42,000 shares to 14,000 shares.
Analysts read the divergence as a reflection of how differently the two stocks fell during the recent correction in semiconductor shares. Last month, Samsung and SK hynix plunged 21.4% and 35.2%, respectively. Despite record second-quarter results, doubts over whether the memory market has peaked have not been resolved, and Samsung — which fell less sharply — has drawn more bets on further declines, according to this interpretation.
“Samsung has a large market capitalization and high liquidity, so these could be short positions aimed at adjusting exposure to the Korean stock market or to semiconductors, both of which are still up significantly from the start of the year,” said Ko Tae-bong, head of the research center at iM Securities.