SEOUL, Nov. 22 (Korea Bizwire) — SK hynix Inc., the world’s No. 2 memory chip maker, is slipping in the ranking of market capitalization amid growing concerns about a slump in the semiconductor market.
On Monday, SK hynix shares closed at 86,300 won, down 2.38 percent from the previous trading day.
The company’s market capitalization fell to 62.8 trillion won (US$46.2 billion), with its ranking sliding to fourth in the South Korea’s stock market behind Samsung Biologics Co. for the first time since Nov. 8.
Its shares have plunged by more than 30 percent from 130,000 won at the beginning of this year to around 80,000 won now.
In particular, since Samsung Electronics Co. vowed not to cut output, concerns are growing over a possible game of chicken in the semiconductor industry, dampening investment sentiment for SK hynix.
The chip maker is expected to see its operating deficit reach 31.4 billion won in the fourth quarter of this year and 671.3 billion won in the first quarter of next year, according to forecasts by FnGuide Inc.
A rising number of brokerage houses including Kiwoom Securities Co. and Hi Investment & Securities Co. are lowering their target price for SK hynix.
J. S. Shin (firstname.lastname@example.org)