In the domestic stock market, despite the difficult environment of a sharp increase in the exchange rate, foreign investors are unusually net buyers. In just this month alone, he has stored more than 1.5 trillion won.
Looking at overseas shopping carts, Samsung Electronics and SK Hynix, the top two semiconductors, account for 90% of net purchases. Although the global semiconductor industry is slow, it is analyzed that the investment attractiveness of Korean companies is highlighted compared to that of Taiwan, a comparative country.
Meanwhile, in the IPO market, Lionheart Studio and Golfzon Commerce, which expected stocks, suddenly withdrew from listing. They were originally scheduled to hold demand forecasts and public offerings, respectively, this week. Investor sentiment about publicly offered stocks is expected to take a significant hit from consecutive delistings.
Foreigners, Samjeon and SK Hynix ‘rising’
According to the Korea Exchange on the 16th, the KOSPI index closed at 2212.55 last week, down 0.90% from the previous week. The US Consumer Price Index (CPI) showed a downward trend immediately before the announcement, but instead narrowed the decline after the results were confirmed.
In terms of supply and demand, foreign ‘lion’ movements stood out. This month, foreigners bought a net 1.543 trillion won in the KOSPI market. It receives all the volume poured by organizations and individuals with a selling advantage.
In the market, the reaction is that foreign net buying is unusual while the sharp increase in the exchange rate has not subsided. The dollar/won exchange rate has been hovering around 1,400 won for the first time after breaking through the 1,400 won range last month. Usually, the depreciation of the currency earned is considered a factor that devalues the domestic stock market and encourages foreigners to sell.
In particular, foreigners focused on the semiconductor industry. Samsung Electronics (762.3 billion) and SK Hynix (655.4 billion) alone attracted 1.41 trillion of money. It accounts for 90% of total purchases. In response, stock market experts interpret Taiwan’s information technology (IT) industry cycle, which is often compared to Korea, in the semiconductor sector as negative views on Taiwan’s IT industry cycle are growing and it’ the buying trend is moving towards Korea.
Park Sang-hyeon, a researcher at Hi Investment & Securities, said, “Despite the common denominator of the decline of the semiconductor industry, the feeling that the impact of US semiconductor export regulations to China will have a more adverse effect on Taiwan’s IT .industry than Korea due to deteriorating cross-strait relations.”
In addition, some analysts say that the price attractiveness of the KOSPI has increased due to the combination of a sharp increase in the exchange rate and a drop in stock prices. According to Hi Investment & Securities, the KOSPI index in dollar terms fell by around 48% from its previous peak in early July last year.
Researcher Park said, “Given various uncertainties and credit risks, the possibility of a further decline in the dollar-based KOSPI cannot be excluded.”
Meanwhile, ahead of earnings season, stock market consensus adjustments are expected to continue. A downgrade is expected for all sectors.
According to Kiwoom Securities, 3Q sales based on the KOSPI 200 are expected to increase 36.1% from the previous year to 723 trillion won. However, operating profit is forecast to fall 14.0% to KRW53 trillion and net profit to fall 23.5% to KRW37tr. Sales will continue to grow due to inflation, but profitability is expected to decline.
Jae-won Choi, a researcher at Kiwoom Securities, said, “The sluggish performance of the raw material and materials industries and the IT industry is clearly due to the contraction of global demand. “The sluggish performance of the raw material and materials industries and the IT industry IT obviously because of the contraction in global demand well,” he said.
However, as the sluggish earnings have already been reflected in the share price, it is unlikely to increase downward pressure on the share price. Im Seung-mi, a researcher at Hana Securities, said, “In a situation where the stock price has fallen by 30-40%, overplunging stocks may instead aim for a short-term rise after confirming their gains.”
One after another giving up in the listing race
The IPO market is still cold. Golfzon Commerce, which was spun off from Golfzon, and Lion Heart Studio, a subsidiary of Kakao Games, suddenly submitted an IPO withdrawal report on the 13th while challenging for a listing on the KOSDAQ.
Golfzon Commerce was caught up in the failure to anticipate demand. Demand forecasts were made on the 11th and 12th, but the proposed public offering failed to secure demand from the Hope Band (12,200 to 12,700 gained). Based on the IPO price, the market capitalization is expected to reach a maximum of 336 billion won.
Lionheart Studio, famous as the developer of Odin, also took a step back in the face of a downturn in the market. The company had previously expected a market cap of 4.49 trillion won based on the highest 53,000 won at the desired offer price. In addition to the market slump, public opinion that the successive splits and relistings of Kakao affiliates undermine shareholder value also seems to have added to the burden of the listing.
Lionheart Studio is open to the possibility of re-listing. The company has enough time until March next year as it can be listed within six months of approval of the preliminary examination for listing.
An official from Lionheart Studio said, “Since only the warranty statement has been withdrawn, the listing will be pursued again in the future.”
