![[Seoul Market Wrap] October 27th: A Bleak Day as Antoic Bleeds Under Heavy Selling](https://media.markettimes.co.kr/%EC%8B%9C%ED%99%A9%EB%A7%A8-4-800x600.webp)
Foreign Investors turn to net buyers as AI and semiconductor stocks rebound on Antropic IPO expectations, led by Samsung and SK hynix.
Key Market Trends
- ① Antropic IPO Expectations Boost AI and Semiconductor Sentiment
News of Antropic's upcoming IPO has lifted AI investment sentiment.
The market anticipates a potential $2 trillion IPO, with first-half revenue reportedly surging 14 times year-on-year to approximately $163 billion.
Confirmation of rapid revenue growth among AI companies, coupled with expectations of increased information disclosure during the IPO process, has further fueled interest.
Memory supply shortages, forecast to persist into 2028 by Bank of America, have also bolstered semiconductor stocks. UBS shares a similar outlook, maintaining a buy rating on Micron.
- ② Samsung and SK hynix Surge on Strong Earnings and Shareholder Return Expectations
Leading semiconductor giants Samsung and SK hynix have strongly rebounded ahead of their earnings announcements, driven by expectations of increased shareholder returns.
Market Rally: A Boost from Semiconductor Giants
The market witnessed a surge in semiconductor stocks, with SK Hynix leading the charge. Reports indicate that the company may initiate an additional $60 billion shareholder return, sparking expectations for a similar move from Samsung Electronics.
Top Performers Drive Index Higher
The top five market capitalization stocks showed a unified strength, with Samsung Electronics and SK Hynix contributing to approximately 70% of the KOSPI's rise.
Semiconductor Strength Spreads
The semiconductor rally extended its reach, with secondary batteries gaining momentum due to large-scale overseas orders. Additionally, the oil and chemical, steel, and construction sectors experienced growth.
Foreign Investors Turn to Buying
- ③ Foreign Investors Turned to Net Buyers... Oil and Interest Rate Stability Provide Support
As Middle Eastern countries engaged in dialogue with Iran, the likelihood of short-term military conflict decreased, according to analysts. This led to a decline in international oil prices and a stabilization of government bond yields.
Foreign investors shifted to net buying, and the range of sectors they purchased expanded. In the KOSDAQ market, most sectors, excluding pharmaceuticals, insurance, and telecommunications, exhibited buying dominance.
In the KOSDAQ, machinery, IT services, finance, and metals were net bought. Institutions focused on the semiconductor-related sectors, exhibiting net buying in the electronics, finance, and insurance sectors of the KOSDAQ market.
Supply and Sector Dynamics
The market, which had broken out of its trading range, rebounded strongly with increased trading activity. The turnaround to net buying by foreign investors and the broader range of their purchases are positive developments.
Semiconductors, led by Samsung Electronics and SK Hynix, drove the gains, with the buying momentum spreading to semiconductor materials and equipment in the KOSDAQ market.
Secondary batteries, petroleum chemicals, steel, construction, and other sectors also exhibited strength, broadening the scope of advancing stocks.
Market Analyst's Perspective
This rebound is notable as it emerged from a critical price level. The KOSPI index had fallen to the vicinity of its 60-week moving average on a dollar-adjusted basis, while SK Hynix attempted a reversal at a key support level. Additionally, the improvement in market sentiment was aided by foreign investors turning to net buying.
The pursuit of an IPO by Anthropic has partially alleviated the recent AI investment controversy that had been pressuring the market. Combined with the outlook for memory supply shortages and expectations of increased shareholder returns from Samsung Electronics and SK Hynix, semiconductors have taken center stage in this rebound, following their recent sharp decline.
Market Outlook and Upcoming Events
As we head into Thursday, investors are bracing for a series of significant events, including major corporate earnings reports and conference calls. Next week, the highly anticipated U.S. midterm elections are also on the horizon. The market is likely to experience continued high volatility, with sharp intraday moves and late-session selling pressure.
In the midst of this, it is crucial to consider that recent market adjustments have reflected a substantial portion of the known adverse factors in stock prices. While keeping an eye on the prevailing volatility, it is essential to monitor the rebound of existing leading stocks and those with accumulated institutional buying.
Sources:
- [Market Insiderof stock story](t.me/shmstory)
- [Market InsiderTV](www.youtube.com/@blueoak1004)
Please note that this article has been reconstructed with the author's consent from a post on Market Insiderof stock story Telegram. All content may contain errors and should not be construed as buy or sell recommendations. The information provided in this post cannot be used as a legal basis for any purpose.