KOSPI in a bear market...SK Hynix, US orders explode 7-fold

▲ SK Hynix/AI-generated image

The KOSPI collapsed to the brink of a bear market in just one day. In contrast, SK Hynix's sale of US shares saw orders exceeding 7 times the offering volume, indicating a completely opposite trend in foreign institutions' betting on AI semiconductors.

According to crypto media outlet BeInCrypto on July 9 (local time), SK Hynix's $28 billion US stock sale received orders exceeding 7 times the supply volume. Even as Korea's KOSPI entered a technical bear market during intraday trading this week, demand from global long-term investment funds, sovereign wealth funds, and specialized Asian institutional investors remained strong.

Baillie Gifford, Coatue Management, and Situational Awareness Partners expressed investment intent totaling up to $7 billion. This deal is the second-largest stock sale globally this year, following SpaceX's $85.7 billion IPO last month. UBS presented a strategy to clients to buy SK Hynix American Depositary Receipts (ADRs) and sell shares listed on the Seoul stock exchange, betting on the possibility of US shares receiving a premium.

Meanwhile, the domestic stock market was gripped by fear. The KOSPI closed down 5.35% at 7,246.79 on the 8th, falling more than 20% from its recent all-time high and dropping below the bear market threshold. After opening on the 9th, it rebounded by approximately 4%, surpassing the bear market threshold again in a single day.

Market concentration also amplified volatility. Zavier Wong, a market analyst at eToro, stated, "Samsung Electronics and SK Hynix currently account for about half of the total KOSPI weighting. This has increased from about a quarter at the end of last year," adding, "Even if just one of these two stocks moves significantly, it pulls the entire index before the other roughly 900 listed companies move." Although Samsung Electronics expected a 19-fold increase in profits this week, its stock price fell, and opinions in Wall Street were divided regarding the adjustment of AI semiconductors.

SK Hynix will begin conditional trading on Nasdaq as SKHYV on the 10th, with regular trading starting on the 13th under the ticker symbol SKHY. Even as the Seoul stock market experienced bear market fears for a day, global investors bought SK Hynix's dollar-denominated shares, showing strong demand ahead of its first US listing.

[Article Summary]

-SK Hynix's $28 billion US stock sale attracted orders exceeding 7 times the supply volume.

-The KOSPI plunged 5.35% on the 8th, falling below the bear market threshold, but rebounded by approximately 4% after opening on the 9th.

-SK Hynix will begin conditional trading as SKHYV on the 10th and regular trading as SKHY on Nasdaq starting the 13th.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*