London (AFP) – Global stock markets rose on Friday as investors digested a wave of corporate announcements and as tech sentiment was lifted ahead of the Wall Street debut of South Korean chip titan SK hynix. The supplier of advanced memory chips used for AI technology raised $26.5 billion for its mega US listing due Friday, in what will be one of the world’s biggest ever stock sales.
South Korea led gains in Asia, while European markets were muted, with London, Paris, and Frankfurt edging up only slightly around midday. British mobile phone giant Vodafone saw its share price surge 13 percent, topping London’s FTSE 100 index, after French tycoon Xavier Niel was set to pay 5.1 billion euros ($5.8 billion) to become the group’s largest shareholder. On the second-tier FTSE 250, EasyJet shares surged more than 10 percent after US investor Apollo swooped in with a $7.7-billion takeover offer for the British no-frills airline.
Oil prices steadied after spiking earlier in the week as the United States and Iran exchanged fire again. “As we move to the end of the week, volatility has retreated and fears about an escalation in tensions between the US and Iran appear overdone,” said Kathleen Brooks, research director at trading group XTB. “If we do not return to a blockade of the Strait of Hormuz, the impact from the war in the Middle East should not leave a lasting scar on the global economy,” she added. The dollar fell against main rivals as concerns over the war eased. The International Energy Agency noted that “a recovery” in global oil demand had started as supplies tentatively start moving through the strategic Strait of Hormuz again.
The SK hynix IPO has meanwhile helped revive optimism about AI amid recent fears of overspending on the technology and stretched valuations. Tokyo’s stock market closed up more than one percent Friday, with tech investment giant SoftBank piling on more than 10 percent. Hong Kong, Mumbai, Singapore, Sydney, Bangkok, and Manila joined the advances, though Shanghai edged down. SK hynix, along with Samsung and Micron, is a heavyweight in the global market for the high-bandwidth memory used in AI servers alongside other data-crunching semiconductors. The chipmaker set a price of $149 for each American depositary share — slightly more than its Seoul closing price Thursday — ahead of its debut on the Nasdaq on Friday. That meant it had raised $26.5 billion, the most for a US listing by a foreign firm.
“The South Korean company wanted to benefit from the appetite for AI among US investors, and it seems it won’t be disappointed,” said Susannah Streeter, chief investment strategist at Wealth Club. “Even though the stock has already risen by around 660 percent over the past year…plenty of investors are still desperate to get a slice of the company,” she added.
– Key figures around 1100 GMT –
London – FTSE 100: UP 0.1 percent at 10,477.96 points
Paris – CAC 40: FLAT at 8,328.24
Frankfurt – DAX: UP 0.1 percent at 25,136.53
Seoul – Kospi: UP 2.5 percent at 7,475.94 (close)
Tokyo – Nikkei 225: UP 1.2 percent at 68,557.73 (close)
Hong Kong – Hang Seng Index: UP 0.6 percent at 24,175.12 (close)
Shanghai – Composite: DOWN 1.0 percent at 3,996.16 (close)
New York – Dow: UP 0.3 percent at 52,487.41 (close)
Euro/dollar: UP at $1.1435 from $1.1430 on Thursday
Pound/dollar: UP at $1.3435 from $1.3410
Dollar/yen: DOWN at 161.78 yen from 162.38 yen
Euro/pound: DOWN at 85.12 pence from 85.23 pence
Brent North Sea Crude: UP 0.2 percent at $76.47 a barrel
West Texas Intermediate: UP 0.1 percent at $72.17 a barrel
© 2024 AFP
