[Themed Stocks] Samsung Electronics, up more than 4% in pre-market trading... influenced by the plunge in oil prices and the rebound of U.S. semiconductor stocks

Samsung Electronics saw a strong gain of more than 4% in pre-market trading. Analysis suggests this is mainly driven by expectations for further US-Iran negotiations, a plunge in oil prices, and the simultaneous rise of AI and semiconductor stocks in the US stock market, which boosted investment sentiment.

According to Nextrade data, Samsung Electronics was reported at 215,500 Korean won in pre-market trading, up 9,000 Korean won (4.36%) from the previous trading day. The current quote is 214,500 Korean won.

Last night, the New York stock market closed higher under the combined effect of expectations that geopolitical risks will ease and easing price pressures. The Dow Jones Industrial Average rose 0.7%, the S&P 500 increased 1.2%, and the Nasdaq index gained 2.0%. Among semiconductor stocks, Micron Technology rose 9.1% and Nvidia increased 3.8%, which also had a positive impact on investment sentiment for major domestic semiconductor blue chips.

Oil prices and exchange rate trends also showed a positive tone. West Texas Intermediate (WTI) crude oil prices plunged 8.1%, closing at $91.4 per barrel, and the US dollar/Korean won exchange rate fell to 1,470.4 Korean won. As pressure from raw materials and exchange rates eased somewhat, overall risk appetite in the Korean stock market is recovering.

Price indicators also brought comfort to the market. The US March Producer Price Index (PPI) rose 4.0% year over year, below the market expectation of 4.6%. After the Consumer Price Index (CPI), the PPI also came in below expectations. Market commentary said inflation concerns brought on by the war have been alleviated.

Kiwoom Securities analyst Han Ji-young said that factors including expectations for further US-Iran negotiations, the sharp drop in WTI oil prices, and the March PPI coming in below expectations jointly contributed to the easing of war risk and the strength of AI and technology stocks. She further noted that the KOSPI index is expected to continue its upward attempts based on factors such as falling oil prices, the Nasdaq’s strength centered on semiconductor stocks, and the decline in the US dollar/Korean won exchange rate.

In addition, the forward earnings growth rate per share of the MSCI Korea Index, using April as the baseline, reached 195%, far exceeding 23% in the US, 5% in Japan, and 5% in Germany. This is also seen as a factor that boosts domestic stock market profit-growth expectations. Previously, the index had been led by semiconductor stocks with clearly improving performance expectations.