SM Entertainment's (SM) stock price has plummeted, despite the recent success of its artists, such as NCT Dream, in Japan. Some analysts suggest that rumors circulating within the securities industry may have impacted the stock's performance.
On the 4th, SM closed at 81,900 KRW, down 7,300 KRW (-8.18%) from the previous trading day.
Initially, the stock price remained stable at the previous day's level, even rising to 90,900 KRW at one point. However, by 3 PM, it recorded the largest drop of the year, plummeting to 80,500 KRW (-9.75%).
Securities analysts attributed the sudden drop to a block deal (after-hours bulk trading). Last month, on the 28th, HYBE disposed of some shares via block deal for "investment asset management efficiency." SM disclosed this information after the market closed, suggesting it wasn't the direct cause of the stock plunge.
Meanwhile, there were speculations that rumors about SM's artists circulating on online communities might have influenced investor sentiment. Despite some adjustments in entertainment stocks, SM experienced the largest decline.
Recently, SM artists such as aespa and NCT have been gaining significant popularity.
Aespa's first full-length album, "Armageddon," released on the 27th of last month, has topped charts in Korea, China, and the UK. Their pre-released title track "Supernova" also achieved top positions on major domestic music charts like Melon, Genie, and Bugs, and secured five trophies on music shows. Their accumulated Spotify streams surpassed 48.1 million, proving their widespread popularity.
NCT Dream recently concluded their first dome tour in Japan, performing five concerts across Osaka, Tokyo, and Nagoya, attracting a total of 235,000 attendees, all sold out. They are set to release their second Japanese single, "Moonlight," on the 5th.
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