SEOUL, October 23 (AJP) - South Korea's benchmark Korea Composite Stock Price Index (KOSPI) recovered from an opening loss of 4.1 percent to close at its session high on Friday, after SK hynix shelved plans for a U.S. listing of its Solidigm unit.
The main index in Seoul added 16.53 points or 0.3 percent to close at 5,550.30 points.
SK hynix jumped 4.4 percent to 1,277,000 won (US$964), far ahead of Samsung Electronics, which edged up 0.5 percent to 215,500 won. Foreign investors sold a net 994.1 billion won of shares, ending a two-session buying streak.
Tokyo traced a similar arc. The Nikkei 225 slipped 214.7 points, or 0.3 percent, to 62,693.2 after losing more than 1,400 points in early trade.
The selloff started in New York, where the Nasdaq Composite fell 2.6 percent on Thursday, its steepest drop since early June.
Meta Platforms' disclosure of about $825 billion in future spending commitments led a batch of earnings that revived doubts over whether artificial intelligence outlays will pay off. The Philadelphia Semiconductor Index lost 6.7 percent.
Seoul opened 2.4 percent below the previous day's close and the KOSPI slid as far as 5,306 as foreigners sold into the open.
But the turnaround came after SK hynix said its California-based NAND flash subsidiary, Solidigm, had halted its review of a pre-IPO funding round and a Nasdaq listing.
Shareholders had objected that a separate listing would dilute their claim on Solidigm's earnings and leave SK hynix trading at a discount.
Lee Eog-weon, chairman of the Financial Services Commission, South Korea’s top financial regulator, told lawmakers on Thursday that the plan fell under the agency’s guidelines on split listings.
SK hynix said the decision "does not reflect any change in Solidigm's growth prospects or investment needs."
Local media tied the stock's move into positive territory to the filing. SK square, SK hynix's largest shareholder, rose 3.2 percent on the day to 775,000 won.
Samsung Biologics surged 7.7 percent to 1,466,000 won ($1,107), though local reports cited no company-specific news. The bounce was narrow. Decliners outnumbered gainers 719 to 173.
Institutions bought a net 872.3 billion won ($658.5 million) and individuals 52.7 billion won ($39.8 million). Foreigners have now sold more than 200 trillion won ($151 billion) of KOSPI shares this year.
The tech-heavy KOSDAQ fell 12.4 points, or 1.6 percent, to 751.7 after losing more than 3 percent intraday.
The South Korean won traded at 1,324.6 per dollar, near its strongest level in about two years.
Friday's recovery rested on a corporate decision in Seoul, not on any answer to the question Wall Street raised. SK hynix reports third-quarter results on Oct. 28, and it still has to find money for the new U.S. fab it says Solidigm needs.
AJP Takeaways
- SK hynix halted its review of a pre-IPO funding round and a Nasdaq listing for Solidigm, its U.S. NAND flash unit, after shareholders objected to dilution. Its shares rose 4.4 percent to 1,277,000 won.
- The KOSPI recovered from a 4.1 percent opening slump and closed 0.3 percent higher at 5,550.3. The gains were narrow, with decliners outnumbering gainers 719 to 173.
- Foreign investors sold a net 994.1 billion won and institutions bought a net 872.3 billion won. Foreigners have sold more than 200 trillion won of KOSPI shares this year.
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