Samsung, SK hynix extend losses on CXMT concern

By Maekyung News Service

Samsung Electronics Co. and SK hynix Inc. extended losses Tuesday after falling more than 4 percent each a day earlier, as weakness in global chip stocks and concerns over Chinese competition weighed on sentiment.

Shares of Samsung Electronics fell 4.99 percent to 238,000 won ($177.98) as of 9:13 a.m., while SK hynix dropped 5.36 percent to 1.519 million won.

Both stocks subsequently extended their declines, with Samsung falling more than 5 percent and SK hynix more than 6 percent.

Chinese chipmaker ChangXin Memory Technologies Inc. (CXMT) weighed on sentiment after announcing over the weekend plans to begin mass production this year of next-generation DRAM using a 4F square (4F²) structure designed to reduce cell size and improve performance.

Overnight, the Dow Jones Industrial Average rose 0.38 percent, while the S&P 500 and Nasdaq Composite fell 0.06 percent and 0.44 percent, respectively. The Philadelphia Semiconductor Index dropped 2.67 percent, reflecting broader weakness in chip stocks.

Across the overall Kospi market, foreign investors recorded net sales of 471.1 billion won, while retail investors and institutions posted net purchases of 183 billion won and 270.5 billion won, respectively.

In the electrical and electronics sector, foreign investors were net sellers of 410.9 billion won, compared with net purchases of 188.4 billion won by retail investors and 207.2 billion won by institutions.

Meanwhile, APR Co. fell 11.36 percent to 312,000 won as of 9:17 a.m. after opening down 7.67 percent at 325,000 won. The stock fell as much as 16.9 percent to 292,500 won.

The cosmetics and beauty device maker has declined for three consecutive sessions since October 8, with losses widening from 2.64 percent on Thursday to 7 percent on Monday.

Shinhan Securities Co. forecast APR‘s third-quarter operating profit at 178.1 billion won Tuesday, about 20 billion won below the market consensus. Revenue was projected at 788.2 billion won, in line with expectations.

“Strong demand in the United States and Europe would support revenue growth, while continued logistics cost pressures would weigh on profitability during the seasonal slowdown,” said Shinhan Securities Analyst Park Hyun-jin.

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