Samsung Elec, SK hynix shares droop amid grim outlook for DRAM prices, demand

[Graphics by Song Ji-yoon]

South Korea’s chip bellwether Samsung Electronics Co. skidded for the fourth consecutive trading session to sink below 80,000 won ($69.24) on Wednesday due to foreign selling spree on concerns about slowed demand for DRAMs and softening in their prices despite the positive news of its chair coming out of jail this week.

The top bluechip stock slipped 2.12 percent to close Wednesday at 78,500 won in Seoul trading after ending the previous session 1.6 percent down at 80,200 won. The stock lost 3.26 percent over four sessions.

The foreign selling spree was triggered by foggier prospects on mainstay memory demand beyond the third quarter. Taiwanese memory market research firm TrendForce estimated that the price of PC DRAMs would decline up to 5 percent in the fourth quarter from three months ago in its report.

Demand for PC DRAMs started falling from last month with suppliers lowering prices to adjust the inventory level. Eased virus restrictions and social distancing also affected the recovery in demand for laptops, according to TrendForce.

The Philadelphia Semiconductor Index on Tuesday sank 1.20 percent. U.S. chipmaker Micron shares drooped 5 percent.

Foreigners shed shares of the country’s second largest chipmaker as well. SK hynix shares continued its fall for sixth consecutive sessions, losing 6.22 percent at 105,500 won under foreign selling.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]