Samsung Electronics, SK Hynix Jump More Than 8% on Report Temasek Is Weighing Investment

Samsung Electronics Co. and SK Hynix Inc. jumped more than 8% after a report said Singapore state investor Temasek Holdings Pte. is reviewing potential investments in the two chipmakers.

Bloomberg reported on August 12 that Samsung Electronics and SK Hynix each rose more than 8% that day. The Kospi also gained about 5%.

Earlier in the day, Asia Economy reported that Temasek is considering investments in shares of Samsung Electronics and SK Hynix. Temasek is weighing a plan to invest directly through its internal investment team and is assessing the timing of any purchase, the report said.

The report quickly improved investor sentiment toward South Korean semiconductor stocks. Samsung Electronics and SK Hynix fell sharply last month as doubts grew over the pace of artificial intelligence infrastructure spending, compounded by the unwinding of leveraged positions.

More recently, attention has shifted to the companies' shareholder return policies, helping the shares rebound. Gains widened further as the possibility of a Temasek investment emerged.