Seoul Stocks Trade Sharply Lower On Profit-Taking
After opening 2.36 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) shed 135.29 points, or 2.44 percent, to 5,398.48 as of 11:20 am (local time), reports Yonhap news agency.
Overnight, U.S. stocks closed mixed, with losses in major technology shares weighing on the broader market.
The Dow Jones Industrial Average rose 0.02 percent, while the S&P 500 fell 1.21 percent and the tech-heavy Nasdaq Composite shed 2.6 percent.
Micron Technology plunged 6.26 percent, while Nvidia and Intel tumbled 4.4 percent and 8.04 percent, respectively.
In Seoul, large-cap shares traded lower. Semiconductor heavyweights Samsung Electronics and SK hynix shed 3.03 percent and 0.25 percent, respectively. SK hynix pared its earlier losses following news that it had decided to suspend plans to list its U.S. subsidiary, Solidigm.
AI investment firm SK Square edged down 0.4 percent following the news.
Solidigm sits within a multilayered corporate structure, with SK Square as the parent of SK hynix, which owns Solidigm. The structure has raised concerns that a separate listing could exacerbate the so-called holding company discount, in which a parent company's stock trades below the value of its underlying assets.
The Korean won was trading at 1,324 won against the U.S. dollar as of 11:20 a.m., up 2.5 won from the previous stock trading session.
Reports have circulated that Solidigm was considering an initial public offering (IPO) in the United States as early as next year, potentially valuing the subsidiary at up to US$150 billion.
"We have decided to halt its review of a pre-IPO fundraising round and a subsequent IPO after taking into account overall capital market conditions," the South Korean chipmaker said.
-IANS
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