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\t\tSK Hynix debuted on the Nadaq last week\t<\/p>\n\t\t\tMonday 13 July 2026 10:04 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tMonday 13 July 2026 10:08 am\n\t<\/p>\n
\t\tSK Hynix debuted on the Nadaq last week\t<\/p>\n
South Korea\u2019s blue-chip index plunged during Monday trading, as investors opted to cash out of SK Hynix following its blistering share price rally upon its Nasdaq debut last week, causing fears of a further tech sell-off to grow.<\/p>\n
The Kospi tumbled 8.9 per cent to 6,806.9 points, dragging it further from the coveted 9,000 mark it was touching just under a month ago. Korea\u2019s market has fallen more than a fifth from its June high of 9,385.5.<\/p>\n
The sharp decline came as SK Hynix suffered a 15.3 per cent fall, trading at 1,845,000 KRW (\u00a3918.5), while rival chipmaker<\/a> Samsung Electronics slumped 9.5 per cent, forcing the stock exchange to trigger yet another 20 minute trading halt.<\/p>\n Investors opted to pull out in Seoul after SK Hynix raised $26.5bn (\u00a319.7bn), on its Nasdaq debut last week, marking the largest US listing by a foreign company.<\/p>\n SK Hynix takes Wall Street<\/p>\n The company\u2019s American depositary shares priced at $149 each, a slight premium to the chipmaker\u2019s closing share price in Seoul on Thursday. Analysts noted that its \u201cheady valuation\u201d would leave South Korea facing a \u201cvolatile ride\u201d.<\/p>\n Susannah Streeter, chief market strategist at Wealth Club, said: \u201cIt was always going to be a volatile ride after the company\u2019s American depositary receipts began trading at such a heady valuation\u2026 US retail investors fearful of missing out on buying into the stars of the AI show.\u00a0<\/p>\n \u201cWhile companies right now can\u2019t get enough of SK Hynix\u2019s products, there are concerns<\/a> that a lot of this demand has been front-loaded and will ultimately prove cyclical.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tDoes trouble lie ahead for South Korea\u2019s star tech stocks?<\/a><\/p>\n \tInvestor anxiety<\/p>\n Away from SK Hynix\u2019s Wall Street debut, investors are cutting back on Asia\u2019s chipmakers after its $1.8 trillion rally moved them among some of the world\u2019s largest companies.<\/p>\n This movement has created anxiety over the concentration of emerging markets and if AI demand can withstand firms moving away from building AI products to finding ways of using it.<\/p>\n The tech sector has seen a wave of sell-offs in recent months as jitters over the sector\u2019s longevity kept being called back into question.\u00a0<\/p>\n Many investors are opting to instead take profit and reduce their holdings to prevent being caught up in wider volatility and potential further sell-offs.<\/p>\n Neil Wilson, investor strategist at Saxo, said: \u201cStocks are finding it hard to sustain such lofty valuations<\/a> because the adoption of AI and return on investment is arguably looking slower than expectations driving stock prices indicated.<\/p>\n \u201cYou have seen it go up so much so quick that it\u2019s mainly about managing risk, trimming exposure and taking profits, but it underscores the risks to the trade and the likelihood that semis and associated AI bets will struggle to lead the market.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n