Samsung, SK Hynix Trade Mixed as Rate-Hike Fears, Oil Gains Weigh
Summary
- Samsung Electronics and SK Hynix traded in a narrow range as investors weighed the prospect of US rate hikes and rising oil prices.
- Large-cap chip stocks are being pressured by higher global oil prices and a sharp rise in US Treasury yields, fueling inflation concerns and the possibility of additional rate hikes.
- Analyst Yeom Dong-chan said current share prices remain low from a valuation perspective despite the risk of a semiconductor slowdown, and recommended keeping exposure to the semiconductor sector at neutral or above.
Forecast Trend Report by Period
Samsung Electronics Co. and SK Hynix Inc. were little changed on September 1 as the prospect of higher US interest rates and rising global oil prices kept investors from taking a clear directional view.
As of 9:39 a.m., Samsung Electronics was down 2,250 won, or 0.87%, at 257,750 won. SK Hynix rose 5,000 won, or 0.30%, to 1,679,000 won, edging higher.
Large-cap semiconductor shares have come under pressure from higher crude prices linked to renewed military conflict between the US and Iran, as well as a sharp rise in US Treasury yields. Concern is also building that higher energy costs could revive inflation, adding to pressure on stocks by increasing the chances of further US rate hikes.
Investor sentiment has also been affected by caution over the semiconductor cycle. Still, some market participants say the risk of an industry slowdown has already been excessively priced into South Korean chip stocks.
Yeom Dong-chan, an analyst at Korea Investment & Securities, said current share prices remain low from a valuation standpoint even if earnings estimates for semiconductor companies are lowered.
He recommended keeping semiconductor holdings at neutral or above, while also adding cyclical sectors where an earnings recovery is becoming evident.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.