KOSPI Rebounds to 8,000 Level on Middle East Optimism; SpaceX Set for Historic U.S. Market Debut

[Anchor]

Growing expectations for an end to the war in the Middle East have brought a warm breeze to the South Korean stock market. The KOSPI, which experienced extreme volatility this week, recovered the 8,000-point mark for the first time in three days. Notably, foreign investors turned to net buying for the first time in 25 trading days since May 7. Meanwhile, Elon Musk's SpaceX is set to make its historic debut on the U.S. stock market tonight (June 12).

Min Gyeong-ho reports on how this might impact our market.

[Reporter]

"Making humanity a multi-planetary species."

How will the market evaluate Elon Musk's dream of reaching Mars?

U.S. aerospace company SpaceX will be listed on the NASDAQ tonight.

[Elon Musk / CEO of SpaceX: SpaceX is pursuing the goal of extending consciousness beyond Earth to build self-sustaining, self-growing cities on the Moon, Mars, and other parts of the solar system.]

Expectations are high.

The initial public offering (IPO) price for retail investors is set at $135 per share.

The expected capital raised is $75 billion, or approximately 114 trillion won, marking the largest IPO in U.S. history.

Domestic interest is also intense.

Two rounds of IPO subscriptions for professional investors held last month were closed in just one and two minutes, respectively.

Over 2 trillion won has flowed into seven domestic space-related ETFs that are expected to include SpaceX in their portfolios over the past month.

Some analysts suggest that the recent streak of net selling by foreign investors in the Korean market was driven by the need to secure funds for SpaceX shares.

However, there are also voices of caution.

Due to its massive size, market volatility is expected to increase whenever the stock is included in major indices like the NASDAQ 100 or when initial lock-up shares are released into the market.

Depending on the initial stock price movement, it could have a significant impact on the Korean market as well.

[Kim Jong-min / Senior Research Fellow at Samsung Securities: In the one to two weeks (following the listing), there will certainly be a reallocation of funds (waiting to buy SpaceX). If the stock price trend remains uncertain, I believe it is highly likely that funds will flow back into semiconductor-focused stocks.]

SpaceX recorded a net loss of over $4.9 billion last year.

As it will take time for the market to determine an appropriate valuation for the company, cautious investment is advised during the initial period of high volatility.

(Reported by Park Jin-ho and Yoon Hyung | Video edited by Park Ji-in)
※ Please note: This article was translated by AI and may contain errors.