[Edaily Reporter Kim Kyung-eun ] In pre-market trading on the 9th, major semiconductor stocks such as SamsungElectronics and SK hynix are showing slight gains. Expectations for a recovery in investor sentiment are growing, as U.S. semiconductor stocks rebounded over the weekend on the back of bargain-hunting, and the perception is spreading that the recent short-term decline in the domestic stock market was excessive.

As of 8:16 a.m. today on the Nextrade (NXT) pre-market, SamsungElectronics(005930)is trading at 192,400 won, up 3,700 won (1.96%) from the previous trading day. SK hynix(000660)is also up 19,000 won (1.68%) to 1,151,000 won.

In addition, top-market-cap stocks such as SKSQUARE(402340)(2.90%), LG Energy Solution(373220)(0.59%), SAMSUNG BIOLOGICS(207940)(0.73%), SamsungElectroMechanics(009150)(2.18%), and KB Financial Group(105560)(1.19%) are all showing an upward trend.

The pre-market rally is attributed to bargain-hunting following last week’s sharp decline and a rebound in U.S. semiconductor stocks. On the 6th (local time), the Philadelphia Semiconductor Index rose 4.2% on the New York Stock Exchange, with Micron (5.1%), AMD (11.0%), and NVIDIA (2.8%) also posting gains. This is the result of buying interest flowing into semiconductor stocks, which had plummeted due to concerns over stricter data center regulations following the U.S. Democrats’ victory in the midterm elections.

Analysts in the securities industry suggest that, given the excessive short-term decline, the likelihood of a rebound this week has increased compared to the possibility of a further sharp drop. In a report released today, KIWOOM Securities projected the KOSPI’s range for this week to be between 4,800 and 5,350.

Han Ji-young, an analyst at KIWOOM Securities, stated, “The KOSPI has fallen approximately 44.5% from its June 22 high, which is an unusually rapid pace even when compared to major crises in the past,” adding, “Unless new negative factors emerge regarding the macroeconomy or AI, we do not expect a repeat of last week’s chain reaction of sharp declines.”

According to KIWOOM Securities, the KOSPI’s average decline intensity relative to the period this year is approximately 5.6 times that of the 1997 foreign exchange crisis and about 2.2 times that of the 2008 global financial crisis. The KOSPI’s 12-month forward price-to-book ratio (PBR) has also fallen to 0.95x, its lowest level since July of last year.

However, volatility is expected to persist during the rebound. Key variables include the U.S. Consumer Price Index (CPI) for October, to be released on the 10th, and the Producer Price Index (PPI) on the 13th. As concerns over U.S. interest rate hikes remain, investor sentiment could be shaken again depending on these inflation indicators.

The earnings reports of AI-related companies are also crucial. CoreWeave is scheduled to report earnings on the 11th, and Applied Materials (AMAT) on the 13th. In particular, the scale of CoreWeave’s capital expenditures and whether its cash flow improves are considered key indicators for assessing the sustainability of AI investments.

One analyst suggested, “At current index levels, investors should consider maintaining existing positions or adopting a strategy of gradual buying, focusing on sectors that have been oversold.”