SEOUL – Samsung Electronics Co., Ltd. (KRX:005930) staged a sharp recovery on Friday, closing at 309,500 won after surging 8.22% in a volatile session. The rebound followed a dramatic 9.06% decline on Thursday, which had rattled investors and amplified market swings on the Korea Composite Stock Price Index (KOSPI).
The KOSPI ended the day up 5.76% at 8,088.34, after an intraday range of 758.18 points — nearly 10% of the previous close. The index opened at 7,739.75, dropped to a low of 7,378.10, then rallied to a high of 8,136.28 before settling. This marked the second-largest intraday swing on record, according to Seoul Economic Daily, trailing only a June 23 move.
Leveraged Products in Focus
The volatility has drawn attention to single-stock leveraged exchange-traded funds (ETFs) tied to Samsung and SK Hynix Inc. (KRX:000660). In June, trading in these leveraged products reached 212 trillion won, accounting for roughly 27% of Korea’s total ETF turnover. These products amplify daily returns by buying more shares when the underlying stock rises and selling when it falls, which can exacerbate market moves.
Fabien Yip, a market analyst at IG, told Business Insider that profit-taking appeared to be the main driver behind Thursday's selloff. He noted that SK Hynix shares remain up over 200% year-to-date despite the recent pullback.
Citi Analyst Sees Technical Correction
Citigroup analyst Peter Lee characterized Samsung's drop as likely technical in nature. He raised his 2026 operating profit estimate for Samsung to 401 trillion won from 334 trillion won, citing strong server DRAM pricing driven by robust CPU demand. Lee maintained his second-quarter operating profit forecast at 84 trillion won, nearly 18 times the year-ago figure.
KB Securities analysts, including Jeff Kim, reiterated a positive outlook on SK Hynix, stating that the upward trend in earnings and stock price is far from over. They highlighted AI-related spending and an expected memory-chip shortage lasting until 2028.
Market Data and Sector Impact
Despite Friday's bounce, Samsung shares remain down about 1.6% over the two sessions. SK Hynix dropped 5.3% in the same period, while the KOSPI is off 2.6%. The annualized volatility for Samsung stands at 78%, and for SK Hynix at 90%, with their leveraged products showing even higher volatility of 156% and 180%, respectively.
Samsung's preferred shares (KRX:005935) jumped 10.23% to 208,000 won, trading at a 32.8% discount to the common stock, offering a cheaper way to gain beta exposure.
Anthropic Deal Talks and Outlook
Separately, shares of Anthropic rose on Friday after MarketWatch reported discussions with Samsung about a potential custom AI chip deal, though no firm agreement has been publicly confirmed. Samsung is scheduled to release its second-quarter results on July 23.
