Samsung Electronics Falls 8%, SK Hynix Drops 6.8% After Aug. 31 Surge

Samsung Electronics down more than 8%, SK Hynix off 6%

Samsung Electronics Co. and SK Hynix Inc. fell sharply in early trading on Aug. 3 as investors took profits after the two stocks' outsized gains on Aug. 31. Analysts said the drop reflected a cooling-off period rather than a break in the broader uptrend.

As of 9:10 a.m. on Aug. 3, Samsung Electronics was trading at 241,500 won, down 8% from the previous session, while SK Hynix had fallen 6.81% to 1,588,000 won.

The declines were widely seen as profit-taking after the Kospi's sharp rally in the previous session on Aug. 31. The benchmark index surged 17.9% in a single day, marking its biggest daily gain on record. Samsung Electronics jumped 26.81% that day, while SK Hynix closed at its daily price limit.

A pause in major US semiconductor stocks, including Micron Technology, also appeared to weigh on sentiment. Wall Street's three main indexes extended gains late last week on strong Amazon.com earnings, but chip shares that had surged a day earlier turned lower as investors locked in profits.

Investors viewed the latest move as a short-term rebalancing after the previous session's jump. The sector's underlying outlook remained solid, however, with global big tech companies continuing to ramp up investment in artificial intelligence.

Brokerages said the pullback looked more like a release of overheated sentiment than damage to the broader trend. Han Ji-young, an analyst at Kiwoom Securities, said the index's 17% surge in a single day, the biggest on record, left room for temporary profit-taking early this week.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com