From
Send to

Electric, electronics shares rise most this year

Feb. 24, 2017 - 10:47 By KH디지털2

South Korean makers of electric and electronics products have been the best performers in the country's main stock market so far this year on the back of chipmakers' strong showings, data showed Friday.

The subindex for the electric and electronics industry climbed 9.24 percent between Jan. 2 and Feb. 22, the highest growth rate among the 18 sectors of the main bourse, according to the data by the Korea Exchange.

This photo, taken on Jan. 26, 2017, shows a woman checking the share price of Samsung Electronics Co. on an electronic board at Yonhap Infomax, the financial news arm of Yonhap News Agency, in Seoul. (Yonhap)

The sector also far outperformed the overall market with the benchmark Korea Composite Stock Price Index increasing 3.96 percent over the cited period.

Analysts attributed the stellar performance of the electric and electronics sectors to high expectations that semiconductor manufacturers will likely post strong earnings this year, helped by increased global prices for dynamic random access memory chips for personal computers.

Top-cap Samsung Electronics Co., a smartphone and chip titan, surged 9.05 percent over the cited period, with chip giant SK hynix Inc. spiking 13.2 percent.

"DRAM prices are expected to continue their uptrend down the road, with those of NAND flash and other memory chips trending higher, despite an expected drop in their shipments," said Lee Jung, an analyst at Eugene Investment Co.

According to market tracker DRAMeXchange, global prices of DRAM chips for computers soared 39 percent on-month in January, boding well for Samsung Electronics and SK hynix. It was the biggest on-month jump since DRAMeXchange began tracking the related data in July 2012.

The KRX data also showed the steelmaking and metals sector came second with a 7.26-percent price hike over the cited period, which was driven by hopes that China's restructuring of its steel industry gripped by overcapacity would stabilize steel prices.

The subindex for banks and other financial companies gained 3.81 percent on expectations for a US interest rate hike and South Korea's push to deregulate its banking sector.

The medicine and precision machinery sector was the worst performer with the subindex tumbling 11.35 percent, with four out of the 18 sectors going south over the cited period. (Yonhap)