Samsung Electronics and SK Hynix Drop Over 9% Instead of Rising; Memory Giants to Attend Government Meeting Next Week, Samsung Unveils 1,000 Trillion Won Chip Plant Expansion
TradingKey - Samsung Electronics and SK Hynix set to attend national conference next week; stock prices plunge over 9% instead of rising.
During the Asian session on June 26, the South Korean stock market suffered a 'Black Friday,' with the KOSPI index plummeting over 8.18% to temporarily trade at 8,199.82 points. KOSPI 200 futures fell 5%, triggering a 'Sidecar' circuit breaker that suspended program trading on the Korea Exchange for five minutes. Meanwhile, Samsung Electronics and SK Hynix plunged 9.21% and 9.43%, respectively.
Samsung Electronics Stock Chart, Source: TradingView
According to the latest disclosures by South Korean media outlet Maeil Business Newspaper, amid recent market volatility and government pressure for balanced regional development, executives from Samsung Electronics and SK Hynix will formally attend the 'Korea Great Leap' national conference hosted by President Lee Jae-myung next Monday (June 29). The key highlight of this conference is Samsung's upcoming reveal of an 'epic blueprint' to invest 1,000 trillion won over the next 10 years to build semiconductor plants.
Despite this positive catalyst, Samsung Electronics and the broader South Korean market fell instead of rising, likely because investors treated the good news as the ultimate 'sell the fact' exit window. Yesterday, the U.S. PCE inflation rate surged to 4.1% (with core PCE reaching 3.4%), triggering extreme panic in global markets that the new Federal Reserve Chair Kevin Warsh might resume interest rate hikes. Ultimately, positive news for individual stocks was no match for the pressure of macroeconomic liquidity.
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