[Edaily Reporter Kim Kyung-eun ] SamsungElectronics(005930)and SK hynix(000660), the leading stocks on the domestic stock market, are both trading lower in early trading on the 3rd. This is interpreted as profit-taking following the sharp rally on the previous trading day, the 31st of last month.

According to MP Doctor, SamsungElectronics is trading at 243,000 won today, down 19,500 won (7.43%) from the previous trading day. SK hynix(000660)is trading at 1,596,000 won, down 122,000 won (7.10%) from the previous close.

On the previous trading day, the 31st of last month, SK hynix hit its daily price limit, and SamsungElectronics rose by more than 26%. However, investor sentiment appears to have cooled as the desire for profit-taking grew following the short-term surge, coupled with major semiconductor stocks such as Micron taking a breather on the New York Stock Exchange over the weekend.

On the 31st of last month (local time), Micron fell 5.90% and SanDisk also dropped 5.09%, giving back some of their previous day’s gains. SK hynix American Depositary Receipts (ADRs), which had surged 17.5% the previous day, also retreated 3.54% on the same day.

Han Ji-young, an analyst at KIWOOM Securities, noted, “Early this week, there is a possibility of temporary profit-taking and short-term position-adjustment selling.” However, she added, “Given that, despite the sharp rally on the 31st of last month, July’s monthly return stood at -22.1%—the third-worst on record since 1990—and had been -34.1% through the 30th of the same month, ranking as the worst on record, it is still appropriate to view the KOSPI as having entered a deeply oversold territory.”