Samsung Electronics, SK hynix fall after Chuseok break

Samsung Electronics Co. and SK hynix Inc. fell early Monday as South Korea’s stock market reopened following the Chuseok holiday.

Shares of Samsung Electronics were trading at 282,000 won ($207.1) as of 9:12 a.m., down 1.23 percent from the previous session. The stock opened 0.35 percent lower at 284,500 won and briefly recovered to its previous close before extending losses.

SK hynix shares were down 2.69 percent at 1.81 million won after falling as much as 2.79 percent shortly after the opening.

The declines came as investors digested global market developments during the holiday break. U.S. stocks ended lower last week after initially coming under pressure from a surge in oil prices.

The Dow Jones Industrial Average fell 0.07 percent from September 22 to close at 51,828.62. The S&P 500 fell 0.27 percent, the Nasdaq Composite dropped 0.64 percent, and the Philadelphia Semiconductor Index declined 0.16 percent.

Oil prices later retreated after Iran said it had proposed a seven-day plan calling for an end to hostilities with the United States and the reopening of the Strait of Hormuz. Global stocks also rebounded, recovering some of their earlier losses.

Foreign and institutional investors were net sellers of 82.6 billion won and 83.3 billion won respectively on Monday, while retail investors were net buyers of 111.9 billion won on the Kospi.

Solar-related stocks, in the meantime, rose early Monday as U.S. prices for solar modules and polysilicon increased ahead of the implementation of Section 232 trade measures.

Hanwha Solutions Corp. shares were up 12.33 percent at 32,800 won as of 9:28 a.m., while OCI Holdings Co. rose 9.47 percent to 225,500 won.

The gains came as U.S. solar module suppliers raised their offer prices amid higher module and polysilicon prices.

Anza, a solar and energy storage platform, said the median price of imported modules was $0.27 per watt on August 7, while the median offer price quoted by suppliers that subsequently repriced their products rose to $0.38 per watt, an increase of about 40.7 percent.

Suppliers are believed to have reflected the expected impact of Section 232 measures in their offers. The measures include minimum import prices for polysilicon and related products, key materials for solar panels.

U.S. prices for monocrystalline PERC modules have also risen about 20 percent from the beginning of the year, while U.S.-made polysilicon prices have increased.

“U.S. module and polysilicon prices were already showing an upward trend ahead of the scheduled December 4 implementation of Section 232 and could rise more sharply afterward,” said Hana Securities Analyst Yoon Jae-sung.

Yoon added that the solar industry, whose polysilicon supply chain is linked to semiconductors, is being reassessed as a strategic national security asset amid U.S.-China rivalry.

This could allow solar stocks to recover some of their recent losses caused by concerns that a U.S.-China summit could lead to an easing of restrictions on China, he said.

Separately, HanAll Biopharma Co. fell more than 7 percent early Monday after partner Immunovant Inc. decided to discontinue development of imeroprubart for cutaneous lupus erythematosus (CLE) after clinical trial results failed to show sufficient efficacy to justify further development.

Shares of HanAll Biopharma were down 7.08 percent at 43,300 won as of 9:33 a.m. after opening down 9.55 percent and falling as much as 10.73 percent.

IBK Securities Co. Analyst Jung Yi-soo said Immunovant announced on September 23 that it would stop developing imeroprubart for CLE after releasing clinical trial results for the indication.

Jung said the decision was unlikely to indicate a failure of the drug’s underlying mechanism, but rather reflected insufficient efficacy to justify continued development.

The analyst removed the indication from the drug’s valuation and cut his target price to 70,000 won from 73,000 won, while maintaining a Buy rating.

Kiwoom Securities analyst Heo Hye-min said the decision could weigh on near-term investor sentiment but would have a limited impact on the drug’s core value, as the development halt reflected the costs of future large-scale trials and the competitive landscape.