Samsung Electronics tops 120,000 won as SK hynix nears 660,000

(Yonhap)

Shares of Samsung Electronics broke above 120,000 won ($84) intraday for the first time on Tuesday, ushering in the era of so-called “120,000-won Samsung,” while SK hynix climbed close to the 660,000-won level as both stocks set fresh 52-week highs.

Samsung Electronics touched an intraday high of 121,200 won, a new 52-week peak, before closing at 119,900 won, up 400 won, or 0.33 percent, from the previous session. It marked the first time the stock had ever exceeded 120,000 won during trading.

SK hynix ended the session at 651,000 won, up 11,000 won, or 1.72 percent. The stock reached an intraday high of 659,000 won, surpassing its previous record.

The rally came despite weakness overnight in U.S. semiconductor stocks, with the Philadelphia Semiconductor Index falling 0.41 percent. Analysts attributed the strong gains in Korea’s heavyweight chipmakers to growing expectations of an industry upturn next year, which helped fuel robust buying interest.

Sentiment was also buoyed by reports that the U.S. government has partially eased export restrictions on semiconductor equipment bound for the companies’ factories in China. Washington has decided to allow shipments on a one-year basis after withdrawing the comprehensive licenses previously granted to the Chinese plants of Samsung Electronics and SK hynix.

The move is expected to spare both companies from having to seek individual U.S. approvals each time they import equipment needed to operate their China facilities.