SK hynix bucks AI sell-off after scrapping Solidigm IPO review
The benchmark KOSPI is displayed in the dealing room of Hana Bank in Seoul, Friday. The index closed at 5,550.30, up 0.3 percent from the previous session. Newsis
KOSPI rebounds from steep losses to end 0.3% higher
SK hynix bucked a broader sell-off in artificial intelligence (AI)-related stocks, Friday, helping drive a rebound in the benchmark KOSPI after the chipmaker said it had dropped its review of a potential U.S. listing of Solidigm, its NAND flash memory subsidiary.
Shares of SK hynix closed at 1,277,000 won ($963.48), up 4.42 percent, while Samsung Electronics rose 0.47 percent to 215,500 won.
KOSPI came under pressure after a rout in AI-related stocks on Wall Street overnight. The Philadelphia Semiconductor Index plunged 6.72 percent, with Nvidia, Micron, SanDisk and Intel among the biggest decliners.
Korea's benchmark index tumbled more than 4 percent in morning trading, briefly sinking to the 5,300 level, before staging a sharp rebound and reversing its losses later in the session. It closed at 5,550.30, up 0.3 percent.
Net buying by retail and institutional investors helped offset selling by foreign investors, who unloaded nearly 1 trillion won worth of shares on a net basis. Retail and institutional investors bought a net 52 billion won and 872 billion won worth of shares, respectively.
SK hynix's decision to abandon its review of a potential initial public offering (IPO) of Solidigm helped bolster sentiment and dragged up the index, according to analysts.
"The news that Solidigm has scrapped its plans for a U.S. listing could help ease concerns over SK hynix's dual-listing risks," said Yang Hyun-kyung, a researcher at iM Securities. "The decision could alleviate worries over a valuation discount and equity dilution."
Geopolitical tensions added to pressure on the market, compounding the impact of weakening global investor sentiment.
Reports that U.S. President Donald Trump was planning a joint attack on Iran with Israel after the midterm elections fueled concerns over escalating tensions in the Middle East. Intensifying clashes between Yemen's Houthi rebels and Saudi Arabia added to geopolitical risks. West Texas Intermediate and Brent crude futures climbed above $100 and $113 a barrel, respectively.
Battery-related stocks declined as investors locked in profits. Samsung SDI, L&F, POSCO Future M and EcoPro Materials fell 4.2 percent, 5.81 percent, 3.6 percent and 3.71 percent, respectively.
Refining and clean energy shares also retreated, with S-Oil, SK Innovation, OCI Holdings and Hanwha Solutions losing 5.29 percent, 2.54 percent, 3.91 percent and 2.23 percent, respectively.
The tech-heavy Kosdaq fell 1.62 percent to close at 751.69.
The won-dollar exchange rate closed at 1,324.6 won per dollar, up 0.4 won from the previous session.