KOSPI Reclaims 5,500; SK hynix Rises on 'Solidigm IPO Withdrawal'

KOSPI opens down more than 2%, closes up 0.3%
Foreign investors sell over KRW 1 trillion net; individuals and institutions are net buyers
KOSDAQ ends near 750 after falling 1.6%

The KOSPI started the day down more than 2% but ended slightly higher, buoyed by net buying by individual and institutional investors. SK hynix closed up more than 4% after news that its subsidiary Solidigm had withdrawn its plans for an initial public offering (IPO) on the Nasdaq in the United States.

Yonhap News Agency

On October 23, the KOSPI closed at 5,550.30, up 16.53 points (0.30%) from the previous trading day. Foreign investors recorded net sales of KRW 1.0921 trillion, while individual and institutional investors recorded net purchases of KRW 233.613 billion and KRW 795.529 billion, respectively. The KOSPI opened at 5,403.17, down 130.60 points (2.36%) from the previous trading day, and fell as low as 5,305.98 in early trading.

Sector performance was mixed. Pharmaceuticals (+3.48%), medical and precision instruments (+2.45%), electrical and electronic equipment (+1.27%), and insurance (+0.09%) ended higher or little changed, while metals (-3.22%), chemicals (-3.04%), machinery and equipment (-2.57%), and transportation equipment and parts (-2.22%) closed lower.

Among the largest companies by market capitalization, SK hynix (+4.4%) and SK Square (+3.2%), ranked second and third, respectively, closed higher after opening lower, buoyed by news of Solidigm's IPO withdrawal. Samsung Electronics (+0.4%), the largest company by market capitalization, ended slightly higher.

Analysts said news of Solidigm's IPO withdrawal had a positive impact on SK hynix's share price. "SK hynix's announcement today that it is suspending its review of a Solidigm IPO is likely to help improve investor sentiment toward semiconductors," said Han Ji-young, a researcher at Kiwoom Securities.

Kim Sun-woo, a researcher at Meritz Securities, also said, "SK hynix announced that it was suspending its review of a Solidigm IPO, while explaining that there had been no change in Solidigm's growth prospects or need for investment." He added, "We believe the company has made clear that enhancing shareholder value is its top priority, ahead of the growth strategy it has in mind."

Kim added, "The company is expected to present more effective and specific measures to enhance shareholder value at its upcoming earnings presentation." He continued, "If valuations, which are near historical lows, coincide with strengthened shareholder returns, we expect SK hynix to drive an effective rebound in its share price."

Samsung Biologics (+7.7%) and Samsung Life Insurance (+1.4%) also closed higher, while Samsung SDI (-4.2%), Doosan Enerbility (-3.5%), Shinhan Financial Group (-2.4%), and Hanwha Aerospace (-2.3%) ended lower.

The KOSDAQ closed at 751.69, down 12.41 points (1.62%) from the previous trading day. Foreign and institutional investors recorded net sales of KRW 28.379 billion and KRW 21.416 billion, respectively, while individual investors recorded net purchases of KRW 46.089 billion.

All sectors declined. Publishing and media reproduction (-5.25%), financial services (-4.01%), metals (-2.24%), construction (-2.16%), and paper and wood (-2.03%) posted notable losses.

Among the largest companies by market capitalization, Alteogen (-2.8%), EcoPro (-5.8%), and EcoPro BM (-5.5%), ranked first, second, and third, respectively, all closed lower. Some semiconductor-related stocks, including Leeno Industrial (-4.0%), Jusung Engineering (-3.6%), and Wonik IPS (-0.9%), as well as some robotics-related stocks, including Rainbow Robotics (-3.4%) and ROBOTIS (-3.0%), also ended lower.

This content was produced with the assistance of AI translation services.