The headquarters of SM Entertainment in Seongdong-gu, Seoul. /News1,
, ‘On the 4th, the stock price of SM Entertainment (SM) plummeted in the final moments of trading, sparking various opinions among investors about the background. Speculation has even been raised that the drop is related to rumors surrounding SM Entertainment artists on social media and online communities.’,
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, ‘On that day, SM Entertainment’s stock closed at 81,900 won on the KOSDAQ market. The stock price dropped by 8.18% (7,300 won) compared to the previous day, marking the biggest decline of the year. Foreign investors and institutions sold a net 6 billion won and 5 billion won worth of SM Entertainment stocks, respectively.’,
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, ‘SM Entertainment’s stock price showed an upward trend, rising to 99,000 won during the trading day. However, around 2:50 p.m., the stock price turned downward, dropping by about 9% to 85,000 won. The difference between the highest and lowest prices of the day is 11.44% (14,000 won).’,
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, ‘Some attribute the sudden drop in stock price to the aftermath of a ‘block deal’ announcement. On the 28th of last month, High-Up sold 755,522 shares of SM Entertainment stock (3.07% ownership) through a block deal, and SM Entertainment disclosed the shareholding change of High-Up on this day. However, as SM Entertainment’s disclosure came after the market closed and High-Up had already announced their block deal plan, there are arguments that the drop was not due to this.’,
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, ‘In some online communities, there are posts suggesting that the drop in stock price may be due to rumors that SM Entertainment artists socialized with employees of entertainment establishments overseas. Considering this, the large decline has raised concerns of a potential order error. As of 4:40 p.m. on this day, SM Entertainment has not provided any specific statements regarding this matter.’,
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