Samsung Electronics shares were on track for the worst day in more than two months on Friday following a report from Morgan Stanley warning over rising inventory in the semiconductor industry. Samsung shares were down 3.3 per cent after Morgan Stanley said “elevated inventory levels and stretched lead times leave no margin for error” cutting their outlook for the chip sector to cautious from in-line. The broker said it was monitoring demand-related data such as the purchasing managers’ index in Asia “as any slowdown in demand could result in an inventory correction in the semiconductor supply chain, similar to what occurred in the summer of 2015”. Morgan Stanley also pointed to a slowdown in global manufacturing in 2018 suggesting more caution around trade tensions. The fall in Samsung shares also comes after the South Korean electronics maker launched its Note 9 smartphone. Fellow South Korean chipmaker SK Hynix was also down 3.5 per cent at a five-month low. Taiwan Semiconductor Manufacturing Company was down 0.6 per cent.