KOSPI Recovers to 5,500 Mark as Solidigm IPO Review Halted
The KOSPI, which had plunged more than 4% during intraday trading, closed higher than the previous session, recovering to the 5,500 mark. The rebound is attributed to a partial recovery in investor sentiment after SK hynix halted its review of Solidigm's initial public offering (IPO). According to the Korea Exchange on the 23rd, the KOSPI closed at 5,550.30, up 16.53 points (0.30%) from the previous trading day. Although the index tumbled repeatedly right after the market opened, institutions and retail investors net bought 869.4 billion won and 30.9 billion won, respectively, clawing back the losses. Foreign investors net sold 967.6 billion won, pitted against the buying by institutions and individuals. The won-dollar exchange rate rose 0.4 won to 1,324.6 (as of the 3:30 p.m. fixing).
Earlier, on the 22nd, the Bank of Korea's Monetary Policy Committee unanimously froze the base rate at an annual 3.00% at its rate decision meeting. While inflation is rising at around 3% and a rate hike carries risks in terms of financial stability, the bank explained that, amid heightened internal and external uncertainty, it wanted first to assess the effects of the previous two rate hikes.
Flows moved ahead of stock prices. Over the past five trading sessions on the KOSPI, Samsung E&A posted the top gain of 36.93%, followed by Jinyang Science (36.89%), Hyein (36.30%), Jinyang Industries (29.79%), and Jinyang Poly (27.58%). KBI Dongyang Steel Pipe led in trading volume, followed by Samsung Electronics, SM Vixel, Daeyang Metal, and ANP. Retail investors net bought Samsung Electro-Mechanics, Samsung Electronics' preferred shares, Samsung SDI, Hanmi Semiconductor, and Daeduck Electronics, while SK hynix, Samsung E&A, Samsung Electronics, Samsung Biologics, and HMM ranked among the top net sells. In the exchange-traded fund (ETF) market, KODEX China Humanoid Robot topped the gainers, followed by TIGER China Humanoid Robot and TIGER 200 Construction.
The U.S. Federal Open Market Committee (FOMC) meeting will be held on the 27th and 28th (local time). According to the CME FedWatch Tool, the probability of a rate freeze this month stands at 92.8%. Earnings reports are also lined up: in Korea time, Microsoft and Alphabet are set to report on the 29th, and SanDisk and Intel on the 30th, while at home, SK hynix is scheduled to release final results on the 28th and Samsung Electronics on the 29th.
Lee Kyung-min, a researcher at Daishin Securities, said, "For big tech earnings, it is necessary to watch not only the growth of AI businesses but also the sustainability of investment. If robust AI growth is confirmed along with investment performance and sustainability, it will ease concerns about AI credit and profitability and bolster the market's rebound momentum." He added, "Attention should also be paid to whether Samsung Electronics and SK hynix announce additional shareholder returns in their earnings releases. If companies present shareholder return plans, they will fill the supply-demand gap and support the market's downside."
