"Will SK hynix Hit 3 Million Won?" All Eyes on Tonight's ADR Listing Review

[Financial News] As the KOSPI broke above the 9,000-point mark for the first time, major events this week are set to test whether the momentum in memory semiconductor conditions can continue, a key driver behind the rally.
According to the Korea Exchange (KRX) on the 22nd, the KOSPI rose 11.4% last week, from the 15th to the 19th, and firmly settled above 9,000 points. Although the Federal Reserve System (Fed) took a hawkish stance at the June Federal Open Market Committee (FOMC) meeting, domestic stocks showed strong resilience, led by the semiconductor sector.
The first market-moving event this week is the United States Securities and Exchange Commission (SEC)'s announcement of its review result on SK hynix's ADR listing, scheduled for the 22nd local time.
An ADR is a depositary receipt that allows U.S. investors to trade shares of foreign companies in dollars. SK hynix filed confidentially in March, then selected major global investment banks as underwriters and has been preparing for a Nasdaq listing. Nasdaq is a major capital market home to many of the world's leading AI-related tech stocks. A direct U.S. listing could attract large amounts of capital from major institutional investors and semiconductor-focused funds.
If the listing is completed as early as August, SK hynix is expected to raise as much as 40 trillion won in global funds, equivalent to about 2.5% of its total outstanding shares. The proceeds are likely to be concentrated on expanding next-generation facilities, including high bandwidth memory (HBM). In particular, a direct Nasdaq listing could trigger a structural inflow of capital from major U.S. institutional investors and semiconductor-focused passive funds, which analysts say could become a catalyst for a revaluation of the company's market value.

Then, in the early hours of the 24th Korea time, a decision will be made on whether South Korea will be added to the watchlist market for long-sought inclusion in the MSCI World Index.
If South Korea is placed on the watchlist in this annual review, it could seek formal inclusion in the developed-market index as early as 2028. Inclusion is expected to bring in about 44 trillion won in passive funds, but some remain cautious, saying that the bar for being added this year is still high because of grace periods for regulatory improvements.
The biggest turning point for the market this week is expected to be the earnings release from Micron Technology, Inc., which will shape investor sentiment across the domestic semiconductor sector. Micron reports before Samsung Electronics and SK hynix, earning it a reputation as a bellwether for the global memory chip cycle.
Wall Street currently expects Micron's fiscal third-quarter revenue to reach $34.44 billion and earnings per share (EPS) to come in at $19.74, both record highs. Some investment banks, including Goldman Sachs, have raised their price targets one after another, saying revenue could exceed consensus at $37.6 billion.
However, with expectations already running high, there is still a chance of another post-earnings selloff like the one seen in the second quarter if management's long-term supply outlook for 2027 or its pricing strategy falls short of market hopes.

Meanwhile, the May Personal Consumption Expenditures Price Index (PCE) in the United States, due out on the 25th local time, could also influence the direction of interest rates. Its importance has grown even further after the Fed scrapped forward guidance at last week's FOMC meeting.
Even after the previous agreement, uncertainty remains, with Iran over the weekend declaring it would block the Strait of Hormuz again amid clashes between Israel and Lebanon. If May PCE comes in above market expectations of a 4.1% year-on-year increase, it could reinforce the Fed's hawkish stance and weigh on stocks.
sms@fnnews.com Sung Min-seo Reporter