Samsung Electronics stock rebounds after six trading days

(Yonhap)

South Korean chipmaker Samsung Electronics Co. saw its stock price rebound to the 50,000-won ($35.56) level after six trading days on early Friday, supported by bargain buying.

Samsung Electronics shares were trading at 51,600 won on the main Kospi market as of 9:07 a.m., up 3.41 percent from the previous day.

The stock had declined for five consecutive trading days since closing at 57,500 won on November 7th, 2024, dropping to 49,900 won, a low not seen in 4 years and 5 months, on Thursday. However, the stock seems to have rebounded as a lot of bargain hunters came in on the perception that the current price level is a historical low.

Other semiconductor stocks, such as SK hynix Inc. (up 1.16 percent), Hanmi Semiconductor Co. (up 0.74 percent), TechWing Inc. (up 2.23 percent), and Leeno Industrial Inc. (up 1.20 percent), also saw gains in their shares on Friday. The gains were partly influenced by improved investor sentiment following rises in semiconductor stocks in the U.S. market overnight, such as Nvidia Corp. (up 0.34 percent), ASML Holdings N.V. (up 2.90 percent), and TSMC (up 0.99 percent).

Meanwhile, secondary battery-related stocks fell sharply in early trading on Friday amid reports that the incoming Trump administration is considering removing electric vehicle (EV) tax credits.

LG Energy Solution Ltd. shares were trading at 384,500 won as of 9:10 a.m., down 37,500 won, or 8.89 percent, from the previous session. Shares of POSCO Holdings Inc. also dropped 11.29 percent, while those of LG Chem Ltd. were down 4.35 percent, Samsung SDI Co. down 7.75 percent, and POSCO Future M Co. down 10.48 percent.

In the secondary Kosdaq market, EcoPro BM Co.’s stock fell 9.25 percent, EcoPro Co. shares were down 8.45 percent, and EnChem Co. shares down 14.97 percent.

Reuters reported on Thursday, local time, that President-elect Donald Trump’s transition team is planning to eliminate EV tax credits under the Inflation Reduction Act (IRA). Tesla Inc.’s stock, which had surged after Trump‘s election, also fell 5.77 percent in response.

There are concerns that removing the tax credit could sharply reduce demand for EVs, potentially impacting the entire EV supply chain, including secondary batteries.

In other market news, Korea food company Pulmuone Co. saw its stock price surge over 5 percent on Friday, driven by its record-breaking third-quarter performance in 2024.

Pulmuone shares were trading at 10,890 won as of 9:30 a.m., up 5.01 percent from the previous day. The stock rose 6.75 percent to 11,700 won earlier in the day.

The company announced before the market opened that its third-quarter consolidated sales were 833.7 billion won, up 11.7 percent year-on-year, with operating profit rising 52 percent to 33.3 billion won.

Its sales and operating profit in the first three quarters of 2024 totaled 2.4 trillion won and 65.8 billion won respectively, which were all-time highs for both individual and cumulative sales and operating profit.