SK Hynix Shares Slump in South Korea After US Listing

Summary

SK Hynix shares dropped 14% in Seoul following its US trading debut, after rallying 100% in three months ahead of the event. Neil Campling of Bloomberg explained the weakness by the pre-listing run-up, ETF-related flow adjustments, and a local broker warning that upcoming earnings may fall slightly short of elevated consensus expectations. He also noted that the stock’s high volatility is likely to persist due to these factors.

• SK Hynix closed down ~14% in Seoul after its US listing.
• The stock had rallied 100% over the prior three months in anticipation of the US offering.
• Fund adjustments and newly launched ETFs around the offering added selling pressure.
• A local broker flagged that earnings could come in slightly below consensus, which had moved higher rapidly.
• Neil Campling expects SK Hynix volatility, twice the market's, to continue for some time.
• An opening clip expressed a bullish view on memory demand driven by AGI, with supply unable to catch up.