Samsung Electronics, SK hynix trade mixed after two-day plunge last week

The stocks of Samsung Electronics Co. and SK hynix Inc. were trading in a narrow range Monday as investors sought direction following a sharp sell-off late last week.

Samsung Electronics was trading at 189,200 won ($139.03), up 0.26 percent, as of 9:12 a.m., after opening down 0.79 percent at 187,200 won. It climbed as much as 1.43 percent to 191,400 won before falling as much as 0.9 percent to 187,000 won.

SK hynix was down 0.09 percent at 1.131 million won, after rising as much as 0.97 percent to 1.143 million won shortly after the opening and falling as much as 1.41 percent to 1.116 million won.

The two chipmakers plunged 13.44 percent and 18.91 percent, respectively, over the two trading sessions on Thursday and Friday.

The sell-off late last week was driven by concerns that a sweeping Democratic victory in the U.S. midterm elections could lead to tighter regulation of AI data centers. Those concerns eased somewhat after major U.S. semiconductor stocks rebounded.

On Friday, the Dow Jones Industrial Average fell 0.46 percent on the New York Stock Exchange, while the S&P 500 and Nasdaq Composite gained 0.31 percent and 1.09 percent, respectively.

The Philadelphia Semiconductor Index surged 4.2 percent, recouping part of its 12.25 percent loss in the previous session.

In broader market trading, foreign investors were net sellers of 214.3 billion won worth of shares as of the same time, while retail investors and institutions were net buyers of 106.6 billion won and 93 billion won, respectively.

In the electrical and electronics sector, foreign investors recorded net sales of 169.4 billion won, while retail and institutional investors posted net purchases of 92.7 billion won and 66.6 billion won, respectively.

Meanwhile, shares of Hanwha Machinery & Service Holdings Co. (Hanwha M&S) rose more than 9 percent early Monday after Kim Dong-seon, the company’s president and head of future strategy, announced an additional tender offer.

Hanwha M&S was trading at 7,660 won, up 9.43 percent, as of 9:24 a.m.

Kim announced a second tender offer for 3.38 million common shares of Hanwha M&S through November 30, after falling short of his target in the first offer, between October 12 and November 2. The offer price remains unchanged at 8,000 won per share, putting the total purchase value at about 27 billion won.

Kim acquired 22,975,541 shares in the first offer, below his initial target of 26.2 million shares. The purchase nevertheless raised his personal stake to 32.99 percent, making him the company’s largest shareholder.

His stake, including shares held by specially related parties, now stands at 75.51 percent.

Shares of Samyang Foods Co. fell 6.72 percent to 1.138 million won as of 9:27 a.m., after opening down 4.18 percent at 1.169 million won and sliding as much as 9.92 percent to 1.099 million won.

The decline followed the company’s report of lower third-quarter net profit.

On Friday, Samyang Foods said its net profit fell 18.9 percent from a year earlier to 89.2 billion won in the third quarter, apparently due to foreign-currency valuation losses stemming from the stronger won against the U.S. dollar.

Operating profit, however, jumped 49.9 percent to 196.2 billion won, while revenue rose 25.3 percent to 791.8 billion won.

“Near-term earnings could be affected by the stronger won and temporary delays in revenue recognition following changes in European distribution partners,” said Park Seong-ho, an analyst at LS Securities Co. “However, U.S.-led growth and the recognition of some deferred European sales are expected to support fourth-quarter results.”

He added that the current share price reflects concerns over currency-related earnings pressure, while growth momentum that could offset exchange-rate headwinds next year is likely to draw investor attention.