SK HYNIX ACCELERATES 40 TRILLION WON SHARE BUYBACK

SK Hynix announced an acceleration of its 40 trillion won (approximately £28.7 billion) share repurchase and cancellation programme on Thursday, triggering a surge of over 12% in the company's Seoul-listed shares. The South Korean memory chip manufacturer also committed to expanding shareholder returns to over 50% of cumulative free cash flow generated between 2025 and 2027. According to analysis from Citi, the buyback reflects SK Hynix's confidence in its mid-to-long-term growth outlook despite current headwinds in the memory sector.

The announcement follows an earlier statement this month that SK Hynix would invest 54 trillion Korean won to construct new memory chip manufacturing plants, capitalising on growing demand for components used in artificial intelligence applications. An analyst at Citi characterised the buyback as providing "tangible downside support" and a "meaningful floor for the share price" in the near term. The company's decision to signal current share valuations do not reflect the business's intrinsic value came during a period of heightened volatility in South Korean technology stocks, which had experienced sharp losses in preceding sessions.

The broader Asian technology sector gained ground on Thursday, with Samsung Electronics rising 8.69% and SoftBank Group advancing 3.79%. Market sentiment was supported by gains in United States stocks, which recovered from a three-day losing streak as yields on longer-dated U.S. Treasurys retreated from multi-year highs. South Korea's semiconductor-heavy market had experienced significant whipsawing between steep losses and gains in recent trading sessions.