South Korean chip and electronic parts stocks have rebounded sharply this month as they were targeted for bargain hunting by foreign investors on prospects of IT demand recovery.

According to the Korea Exchange on Sunday, SK Hynix became the primary target by foreign investors who net purchased 138.8 billion won ($116 million) from Sep. 2 to Sep. 6.

SK Hynix shares as result climbed over 80,000 won last week after trading below 65,000 won in the mid June. On Monday, the stock closed 2.93 percent higher at 84,300 won from the previous session.

The sudden bout of bargain hunting reflects investor expectations for a recovery in the memory chip market, where SK Hynix is the second largest, amid migration to 5G communications devices and renewed capital investment in data center servers.

Hopes for easing in tensions between the United States and China also revived investors’ appetite for Korean tech shares.

Foreigners remained wary of Samsung Electronics whose business portfolio ranges from semiconductors to house appliances and smartphones. Offshore investors were net sellers of Samsung Electronics’ common shares while picking up its preferred stocks.

The second favorite tech bargain for foreigners was Samsung Electro-Mechanics, the electronic parts making unit of Samsung Group, with 127 billion won worth of shares net purchased by foreigners. Their buying is heavy, given the company’s market value at 7.26 trillion won as the 37th most expensive stock on the main Kospi.

Shares of Samsung Electro-Mechanics in downward spiral since mid April hit a new 52-week low of 84,100 won on Aug. 7, nearly halved from last year’s high of 166,000 won. But the stock price rebounded recently on expectations for demand in the company’s mainstay product of multilayer ceramic capacitors. Samsung Electro-Mechanics shares on Monday rose to 98,000 won in the morning trade and finished the day 0.21 percent lower at 97,000 won.

By Hong Hae-jin and Lee Ha-yeon

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