In early trading on the 4th, Samsung Electronics and SK hynix are plunging. The drop is seen as stemming from a sharp deterioration in investor sentiment as tensions between the United States and Iran continue.
As of 9:13 a.m. that day on the Korea Exchange, Samsung Electronics is trading at 183,300 won, down 11,800 won (6.05%) from the previous session. At the same time, SK hynix is also trading at 889,000 won, down 50,000 won (5.32%) from the previous session.
It has been eight trading days since Samsung Electronics fell into the 180,000-won range and SK hynix into the 800,000-won range.
The slump is seen as the result of a sharp contraction in investor sentiment amid rising tensions in the Middle East. If the Strait of Hormuz, through which 20% of the world's oil consumption passes, is blocked for an extended period, international oil prices could surge and increase valuation (corporate value) burdens across domestic sectors.