Feb. 17 (Bloomberg) -- Hynix Semiconductor Inc., the world’s second-largest maker of computer memory chips, fell the most in almost two months in Seoul trading after JPMorgan Chase & Co. cut its rating on the stock, citing lower prices.

Hynix lost 8.3 percent to close at 8,210 won on the Korea Exchange, the most since Dec. 24. The benchmark Kospi index fell 4.1 percent.

JPMorgan lowered the rating on Ichon-based Hynix to “underweight” from “neutral” in a report today. Recent price increases of computer memory chips are unsustainable and prices will be pressured by a “worsening demand outlook,” wrote JJ Park, an analyst at JPMorgan in Seoul.

Prices of the benchmark dynamic random access memory chip surged 53 percent from the start of the year to peak at $1.12 on Feb. 3, after makers cut output to counter a glut and Munich- based Qimonda AG filed for insolvency, according to Dramexchange Technology Inc., operator of Asia’s biggest spot market for semiconductors. They have dropped 15 percent since then.

“In view of the limited upside on DRAM pricing, we believe meaningful upward movements in DRAM makers’ share prices are highly limited,” Park wrote.

To contact the reporter on this story: Kevin Cho in Seoul at kcho2@bloomberg.net

Last Updated: February 17, 2009 04:09 EST