SK Hynix and Samsung Electronics stocks plunged on July 13, with SK Hynix falling 12.43% to 271,000 won and Samsung Electronics dropping 8.42% to 261,000 won as of 2:03 PM. Analysts attributed the decline to fading expectations around SK Hynix's ADR listing, concerns over second-quarter earnings falling short of elevated market expectations, and renewed geopolitical tensions between the US and Iran over the Strait of Hormuz during the weekend. The KOSPI index fell 7.67% to 6,902.37, marking its first close below 7,000 since May 4.
SK Hynix and Samsung Electronics Record Double-Digit Intraday Declines
According to Yonhap Infomax stock price data (screen number 3111), SK Hynix traded at 271,000 won at 2:03 PM on July 13, down 12.43% from the previous trading day. Samsung Electronics recorded 261,000 won at the same time, down 8.42%. Both stocks are market leaders and the two largest semiconductor stocks, and they rapidly expanded their losses during intraday trading.
Kim Seok-hwan, researcher at Mirae Asset Securities, stated that "expectations for SK Hynix's ADR listing, which had driven recent stock price increases, materialized, leading to profit-taking pressure following the disappearance of the catalyst." He added that "concerns that second-quarter earnings may not meet elevated market expectations also played a role."
Han Ji-young, researcher at Kiwoom Securities, noted that "despite the success of SK Hynix's ADR, concerns about the memory industry cycle's 'peak-out' remain unresolved." She explained that "unprecedented volatility in semiconductor stocks is increasing market fatigue and causing supply outflows." Han further stated that "the re-intensification of geopolitical conflict due to conflicting announcements by the US and Iran over the weekend regarding the Strait of Hormuz closure also appears to be having an impact."
KOSPI Triggers Circuit Breaker as Index Falls Below 7,000
The KOSPI index fell 7.67% to 6,902.37 as of the current time. This marks the first time the index has fallen below 7,000 since May 4, approximately two months ago.
The index opened at 7,412.03, down 0.85%, fluctuated, then turned downward and rapidly expanded its losses. A circuit breaker was triggered when the KOSPI plunged over 8%, temporarily halting trading in the afternoon. Earlier, at around 10:34 AM, a "sell-side sidecar" was also activated in the securities market.
Analysts Recommend Cautious Approach Over Aggressive Buying
Securities firms advise responding to the market with cautious, incremental approaches rather than hasty buying.
Researcher Kim stated that "SK Hynix's sharp decline is closer to a volatility adjustment that simultaneously reflects the disappearance of the short-term ADR listing event, elevated earnings expectations, and leverage position unwinding, rather than a result of damage to the semiconductor industry conditions or medium- to long-term profit direction." He recommended that "until the current supply instability is resolved, an incremental approach considering volatility is appropriate, rather than chasing buys based solely on ADR premiums."
FAQ
What caused SK Hynix and Samsung Electronics stocks to fall on July 13?
Analysts attributed the decline to fading expectations around SK Hynix's ADR listing, concerns that second-quarter earnings may not meet elevated market expectations, and renewed geopolitical tensions between the US and Iran over the Strait of Hormuz during the weekend.
What happened to the KOSPI index on July 13?
The KOSPI index fell 7.67% to 6,902.37, marking its first close below 7,000 since May 4. A circuit breaker was triggered when the index plunged over 8%, and a sell-side sidecar was activated at around 10:34 AM.
