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

[Anchor]

Growing expectations for an end to the war in the Middle East have brought a warm breeze to the Korean stock market. The KOSPI, which experienced extreme volatility this week, has recovered the 8,000-point mark for the first time in three days. Notably, foreign investors have 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).

Reporter Min Gyeong-ho explores 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 extension of consciousness beyond Earth to build self-sustaining, self-growing cities on the Moon, Mars, and other places in the solar system.]

Expectations are high.

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

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

Interest in Korea is also intense.

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

Over 2 trillion won has flowed into seven domestic space-themed 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.

Given 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 performance, it could have a significant impact on the Korean market as well.

[Kim Jong-min / Senior Research Fellow at Samsung Securities: (Immediately after the listing) for the first one to two weeks, 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 the appropriate corporate value, cautious investment is advised during the initial period of high volatility.

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