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Samsung Electronics and SK Hynix Plunge Over 4% Amid Middle East Tensions
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-02
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Despite share buyback efforts, Samsung Electronics and SK Hynix shares fell sharply as geopolitical tensions and high interest rates weighed on sentiment.
What Happened
Semiconductor Sell-off: Shares of Samsung Electronics and SK Hynix both plummeted by over 4% as geopolitical risks in the Middle East and a weak performance in New York markets hit investor sentiment. Samsung Electronics saw its share price dip below the 250,000 won mark during the session, while SK Hynix also suffered significant losses.
Geopolitical Impact: The renewed conflict between the U.S. and Iran has triggered a surge in oil prices and pushed U.S. 10-year Treasury yields to their highest levels since January 2025. This macroeconomic uncertainty has weighed heavily on the technology sector globally.
Buyback Limitations: Both companies have been actively engaged in share buybacks to support their stock prices. Despite consistent buying from corporate entities over the past nine trading days, this support proved insufficient to counter the heavy selling pressure from foreign and institutional investors.
Investor Dynamics: Foreign and institutional investors were the primary net sellers of the two semiconductor giants on this day. In contrast, retail investors aggressively bought the dip, highlighting a divergence in sentiment between individual and institutional market participants.