A Week Packed with Samsung and SK hynix Events... Will the Korean Stock Market Rebound? [Good Morning Market]

Preliminary Q2 Earnings Announcement by Samsung Electronics on July 7
SK hynix ADR Listing Scheduled for July 10
"Uncertainties in AI and Semiconductors Expected to Subside"

Starting from July 6, a series of major events are scheduled, including Samsung Electronics' second-quarter preliminary earnings announcement and the listing of SK hynix ADRs. These events are drawing attention as potential catalysts to lift the South Korean stock market out of its recent adjustment phase. Macro factors such as the June Federal Open Market Committee (FOMC) meeting minutes from the United States are also seen as influential variables.

On July 2 (local time), at the New York Stock Exchange (NYSE), the S&P 500 closed at 7,483.24, up 0.01 points. The Dow Jones Industrial Average finished at 52,900.07, up 1.14%. Meanwhile, the Nasdaq Composite dropped 0.8% to close at 25,832. On July 3, the New York Stock Exchange was closed in observance of the U.S. Independence Day holiday.

Reuters Yonhap News

Due to concerns over the profitability of the AI industry, the global semiconductor sector has faced a correction, with the KOSPI dropping to the 7,300 level last week before rebounding to above 8,000. Analysts in the securities industry believe that this week's consecutive events will serve as momentum to strengthen the KOSPI. The second-quarter preliminary earnings announcement by Samsung Electronics is scheduled for July 7, and the listing of SK hynix ADRs is set for July 10.

Lee Kyungmin, a researcher at Daishin Securities, evaluated these events as opportunities for a rebound. He stated, "With the start of the second-quarter earnings season in mid-July, we expect the upward trend to resume and strengthen, based on upward revisions to earnings forecasts. Uncertainties in the AI industry and the semiconductor sector are likely to subside with this week's preliminary earnings announcement from Samsung Electronics."

He continued, "The recent correction has pushed the semiconductor sector's forward price-to-earnings ratio (PER) down to just 4.8 times, and the weak earnings from Samsung Electronics are due to provisioning issues, not fundamental industry conditions. This should reaffirm the favorable underlying conditions in the semiconductor sector. Additionally, with the closing price set for SK hynix ADRs today, the artificial downward pressure on SK hynix's share price is expected to disappear going forward."

The minutes of the June FOMC meeting, which will be released on July 9, are also expected to provide more clarity on the U.S. Federal Reserve's policy stance regarding interest rates. Han Ji-young, a researcher at Kiwoom Securities, commented, "The tone of these minutes could be hawkish (favoring monetary tightening) while also reflecting divisions of opinion within the Fed."

He added, "However, following the June FOMC, there have been additional factors such as a further decline in oil prices and a shock in June's nonfarm payrolls, which could prompt the Fed to adopt a more dovish stance. Taking these factors into account, even if the June FOMC minutes appear hawkish, their impact on the stock market is expected to remain neutral."

This content was produced with the assistance of AI translation services.