Hana Bank’s dealing room at its headquarters in Jung-gu, Seoul, on the 8th. Reporter Cho Tae-hyung
Samsung Electronics (005930.KS) and SK hynix (000660.KS) are rising about 6% and 8%, respectively, in pre-market trading. While Korean stocks plunged the previous day in a “Black Monday,” technology and semiconductor shares rebounded overnight on the New York market, drawing bargain-hunting buyers, analysts said.
As of 8:04 a.m. Tuesday, Samsung Electronics was trading at 314,000 won, up 6.26% from the previous session, according to alternative trading system Nextrade (NXT). SK hynix changed hands at 2.06 million won, surging 7.80%. The previous day, when a circuit breaker was triggered on the KOSPI market, Samsung Electronics closed down 10.2% at 295,500 won, falling below the 300,000 won line. SK hynix also dropped 7.7%, retreating to the 1.9 million won range, but is now showing a rebound before the regular session opens.
The New York market rebounded overnight, with bargain-hunting buyers moving into technology and semiconductor stocks that had declined last week. The tech-heavy Nasdaq Composite Index closed at 25,929.66, up 220.23 points (0.86%) from the previous session, and the Standard & Poor’s 500 Index closed at 7,405.73, up 21.99 points (0.30%). The Philadelphia Semiconductor Index (SOX) rose more than 5.8%, drawing strong buying. The blue-chip Dow Jones Industrial Average, however, closed at 50,786.01, down 0.77 points (0.16%).
Korean stocks may recover part of the previous day’s plunge on Tuesday, partly on the impact of the New York market’s rebound, some say. The previous day, the KOSPI closed at 7,484.41, down a hefty 676.18 points (8.29%). Han Ji-young, a researcher at Kiwoom Securities, said, “Korean stocks suffered a record-setting plunge yesterday as a circuit breaker was triggered, but they are expected to recover the losses, helped by the rebound in US semiconductor stocks and the strength in KOSPI 200 night futures.” She added, “Of course, the shock from the plunge over the two days was so severe that the expanded volatility phase could continue this week.”
