Samsung Electronics, SK hynix rebound on bargain-hunting

The stocks of South Korean chipmakers Samsung Electronics Co. and SK hynix Inc. traded higher early Tuesday after plunging more than 5 percent in the previous session.

Samsung Electronics shares were up 1.11 percent at 273,000 won ($200.77) as of 9:33 a.m. The stock opened down 1.48 percent at 266,000 won before quickly recovering and turning higher.

SK hynix shares rose 0.85 percent to 1.783 million won after briefly falling 4.59 percent to 1.768 million won shortly after the open.

The rebound came as bargain hunters stepped in despite weakness in U.S. semiconductor stocks overnight. The Philadelphia Semiconductor Index fell 1.61 percent while the Nasdaq Composite declined 0.92 percent.

U.S. Treasury yields and oil prices also rose after Washington rejected Iran’s “seven-day plan,” which included a proposal to reopen the Strait of Hormuz, weighing on risk sentiment.

The 10-year U.S. Treasury yield briefly jumped 6.1 basis points to 5.241 percent, its highest level since June 2007.

Tuesday was also Samsung Electronics’ ex-dividend date for its third-quarter dividend, which typically brings selling pressure. The impact appeared to be offset by bargain hunting after Samsung Electronics and SK hynix plunged 5.43 percent and 5.05 percent, respectively, in the previous session.

Retail and institutional investors were net buyers of 286.9 billion won and 104.4 billion won, respectively, on the Kospi, while foreign investors were net sellers of 545 billion won.

Separately, shares of Samsung Electro-Mechanics Co. gained ground in early trading after the company announced plans to invest more than 6 trillion won to expand substrate production facilities in Korea and Vietnam.

Samsung Electro-Mechanics shares were trading at 1.528 million won as of 9:13 a.m., up 1.93 percent from the previous day. The stock opened 1.73 percent higher and surged as much as 4.07 percent to 1.56 million won in early trading.

The company said Monday it would invest 4.27 trillion won to expand package substrate facilities at its Sejong plant in South Chungcheong Province and 2.51 trillion won at its production unit in Vietnam.

The investment is expected to expand production capacity for flip-chip ball grid array (FC-BGA) substrates used in AI servers, prompting buying interest in the stock.

“This disclosure is a signal that further increases visibility for the company’s substrate revenue growth from 2028 onward,” said Mirae Asset Securities Co. Analyst Park Jun-seo.

He also noted that “a significant portion of the capital expenditure appears to be supported by customers, adding that “the large-scale capacity expansion is likely to translate into greater visibility for medium- to long-term earnings rather than an increased investment burden.”

Park maintained his “Buy” rating on Samsung Electro-Mechanics and a target price of 2.8 million won.

Meanwhile, Global Technology Co. and Bigwave Robotics Corp. surged Tuesday morning after making their Kosdaq debuts.

Global Technology shares were trading at 25,700 won as of 9:03 a.m., up 157 percent from their initial public offering price (IPO) of 10,000 won.

Bigwave Robotics shares were trading at 56,400 won, up 213.33 percent from their IPO price of 18,000 won.

Global Technology, a fabless semiconductor company specializing in light-emitting diode (LED) driver chips, set its IPO price at 10,000 won, below the lower end of its initial guidance range of 13,000-15,000 won, following its bookbuilding session with institutional investors.

Robot automation platform company Bigwave Robotics set its IPO price at the top of its 15,000-18,000 won indicative range after revising the range several times during preparations for its listing.