Global DRAM Prices Expected to Rebound in 6 Months
The prices of dynamic random access memory (DRAM) chips are expected to begin rebounding in six months, securities analysts said in a report yesterday.
Analysts with Daishin Securities said there is little chance that the global DRAM market will continue to worsen and that this is an appropriate time to consider expanding investment in chipmakers.
``DRAM prices have been falling throughout the first part of this year but there has been a slight recovery since March, partly because of an earthquake in Japan,'' one analyst said.
However, the slight rebound in prices is not the result of an increase in demand but because of a reduction in inventory which is causing an instability in supply, he explained.
``The recent developments in the DRAM market have created a condition for an overall recovery in some six months,'' the analyst said.
There has been an overall recovery in the Korean economy, symbolized by the increase in consumer demand, and the fall in personal computer prices will further expedite a vitalization of the DRAM market, he added.
``For the time being, the probability is that there will be little decline in DRAM prices toward a full recovery in six months, thus ripening conditions for further investment in chipmakers,'' the analyst said.
The share prices of companies like Samsung Electronics and Hynix Semiconductor have been taking a beating although Samsung prices have rebounded somewhat.
In fact, some securities companies have set the target price of Samsung Electronics shares at 280,000 won even though there continue to be uncertainties over what will happen to Hynix stock because of potential liquidity problems.
In any case, with projections that the DRAM market will not plunge further and a rebound in sight, securities companies and foreign investors are expected to get on the buying block, the analyst said.
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ÀԷ½ð£ 2001/04/16 17:16 |
