Shares of Samsung Electronics and SK hynix dropped sharply on Monday morning after the two chipmakers posted record‑setting gains on the last trading day of the previous week.
Morning sell‑off follows Friday’s rally
At 9:29 a.m. local time, Samsung Electronics was trading at 241,500 won, about 8 % lower than its previous close. The stock opened down 5.52 % at 248,000 won and briefly fell as much as 8.95 % to 239,000 won before easing slightly.
SK hynix fell 8.5 % to 1.57 million won. It opened down 4.42 % at 1.642 million won and briefly hit a 9.02 % low of 1.563 million won before trimming some of the loss.
Both companies had surged on Friday, with SK hynix hitting its daily upper limit for the first time in 17 years, climbing 29.95 %. Samsung Electronics rose 26.81 % to 262,500 won after briefly approaching the same limit.
Market context and investor activity
U.S. equity markets rose after the Korean market closed, helped by strong earnings from Amazon.com Inc. The Dow Jones Industrial Average and the S&P 500 gained 0.53 % and 0.7 % respectively, while the Nasdaq Composite added 1 %.
The Philadelphia Semiconductor Index edged up only 0.07 %, as weaker‑than‑expected earnings from Japan’s Kioxia Corp. raised doubts about the sustainability of recent NAND memory price gains. Meanwhile, U.S. Treasury yields continued to climb.
Related: UK services sector shows strong growth
Observers pointed to short‑term profit‑taking as a factor behind the early weakness in Samsung Electronics and SK hynix. Foreign investors sold a net 1.17 trillion won, and institutional investors off‑loaded 292.9 billion won during the morning session. By contrast, retail investors bought a net 1.42 trillion won.
In the broader Kospi electrical and electronics sector, foreign and institutional investors recorded net sales of 1.18 trillion won and 260.7 billion won, respectively, while individual investors posted net purchases of 1.39 trillion won.
For investors not steeped in chip markets, the episode shows how quickly sentiment can swing. A single day of outsized gains can invite rapid reversals as traders lock in profits, especially when broader indices show only modest moves. This effect can amplify volatility in stocks that have already moved sharply.
Closing prices and related moves
By the end of the session, Samsung Electronics closed at 239,500 won, and SK hynix settled at 1,567,000 won.
Other Korean equities also saw movement. Fashion apparel maker F&F Co. fell 21.12 % to 63,500 won in early trading after its quarterly results highlighted weak performance at its Chinese subsidiary. The stock later closed at 61,800 won.
The morning dip in the two chipmakers illustrates how profit‑taking can temper gains, even after historic rallies, and highlights the importance of monitoring both domestic and international market cues.
