SK hynix rebounds as Solidigm U.S. IPO withdrawal boosts sentiment

SK hynix Inc. shares rose more than 2 percent early Monday as positive sentiment continued following the company’s decision to halt plans for a U.S. listing of its subsidiary Solidigm Inc.

SK hynix rose 2.74 percent to 1.312 million won ($991) as of 9:09 a.m., recovering above the 1.3 million-won level.

SK square Co., which holds a stake in SK hynix, also gained 1.29 percent to 785,000 won. Samsung Electronics Co. edged up 0.23 percent to 216,000 won after fluctuating early in the session.

The benchmark index repeatedly attempted to rebound, with the Kospi’s three largest companies by market capitalization all trading higher.

SK hynix said Friday it had halted consideration of a Nasdaq listing for Solidigm, a move that had been weighing on its stock price. Shares rose more than 4 percent at the regular-session close on Friday. Its American depositary receipts (ADRs) also gained more than 4 percent in New York.

SK hynix is scheduled to report third-quarter earnings Wednesday, with investors focused on the possibility of additional shareholder returns. Samsung Electronics is due to release its finalized earnings results Thursday.

Separately, shares of LIG Defense & Aerospace Co. (LIG D&A) fell 6.62 percent to 444,000 won as of 9:14 a.m., after opening down 7.68 percent.

The stock earlier dropped as much as 9.04 percent to 432,500 won, its lowest intraday level since February 6, when it touched 399,500 won.

The decline followed a statement Sunday by the Defense Acquisition Program Administration (DAPA) that it had asked the Ministry of Trade, Industry and Resources to consider revoking LIG D&A’s designation as a defense contractor in connection with a project to develop a system to counter small unmanned aerial vehicles.

The potential revocation added to concerns about the company’s future business plans.

LIG D&A expressed regret that sanctions were being considered based on the charges while legal proceedings to establish the facts were still underway, and said it would present its position through the prescribed procedures.

On October 20, DAPA imposed a two-year ban on LIG D&A’s participation in weapons development bidding over allegations that the company had paid hundreds of millions of won in bribes to a DAPA official during a weapons development bidding process.

LIG D&A shares fell 8.21 percent that day and lost another 9.03 percent in the following session. The stock has declined for five consecutive trading sessions through Monday.