Foreign investors show a different investment strategy toward SK Hynix and Samsung Electronics. They have been buying SK Hynix shares but selling Samsung Electronics after the Lunar New Year holiday. Market experts believe that this is largely due to the adjustment over a lockup period before Samsung Electronics’ stock split.
According to the Korea Exchange on Feb. 21, SK Hynix closed at 76,900 won (US$71.47) on the same day, up 1.85 percent from the previous trading day. SK Hynix received an adjustment by 1.42 percent and 1.31 percent, respectively, for two days from the 19th, the first trading day after the Lunar New Year holiday, but succeeded in a rally on the 21st. On the other hand, the price of Samsung Electronics shares has been falling for three trading days in a row after the 19th. The company lost 0.25 percent to close at 2,364,000 won (US$2,197).
Overseas investors bought a net 66.88 billion won (US$62.05 million) worth of SK Hynix shares after the 19th. They have been net buying for 10 trading days in a row from the 6th to the 21st. By contrast, foreign investors are net selling Samsung Electronics shares for three consecutive trading days. They shed 164.6 billion won (US$152.45 million) worth of Samsung Electronics shares after the Lunar New Year holiday.
The stock industry expects to see a boom in the semiconductor market and a rise in material prices. This is because semiconductor material producers are forecast to show a good performance due to an increase in both shipments and prices this year. It will also lead to the limitation of DRAM supplies, which is the upstream industry, boosting the prices.
However, Samsung Electronics has a variable caused by the stock split aside from the medium-term forecasts for the semiconductor industry. The stock split is the fact that already publicly announced in the market. It can be positive in share prices in the short term but there is no change in corporate values, according to recent analyses.