Nuclear Power Stocks Rally; KRX Semiconductor Index Rebalancing a Key Variable
News that Holtec, Hyundai Engineering & Construction's US nuclear partner, is pursuing an initial public offering (IPO) lifted related construction stocks. Holtec has filed for listing targeting a valuation of up to $10 billion, and is reportedly undergoing an environmental review related to restarting closed nuclear plants in the US at the same time.
Alteogen stayed near flat after news of a failed clinical trial with Novartis. Growing concerns over the program's continuation weighed on the stock's recent uptrend.
The upcoming rebalancing of the KRX Semiconductor Index following this Thursday's quadruple witching day was also flagged as a supply-and-demand variable. With a 20% cap on per-stock weighting, and both Samsung Electronics and SK Hynix currently exceeding that cap, mechanical selling of these stocks is expected around the September 10 close, taking effect from September 11. It was noted that this flow could shift toward other semiconductor equipment and materials stocks.
Given the difficulty investors face in tracking individual equipment and materials stocks one by one, it was suggested that referencing the constituent weightings of TIGER Semiconductor TOP10, the largest semiconductor ETF by market cap (in order: Samsung Electronics, SK Hynix, SK Square, Hanmi Semiconductor, Jusung Engineering, Isu Petasys, Wonik IPS, EO Technics, DB Hitek, Leeno Industrial), could help gauge broader sector interest.