SK Hynix's shares fell below 2 million won during trading on July 13, just a day after the successful launch of its American Depositary Receipts (ADR) on the NASDAQ. Despite the initial excitement surrounding the ADR, the stock experienced a decline of over 8% due to profit-taking and geopolitical risks.
According to the Korea Exchange, as of 10:38 a.m., SK Hynix shares were trading at 1,996,000 won, down 184,000 won (8.44%) from the previous trading day.
On July 10, SK Hynix listed its ADR on the NASDAQ, which closed at $168.49, a 13.08% increase from the offering price of $149. This translates to a domestic share price approximately 15.8% higher than the closing price of 2.18 million won on July 11, indicating strong interest from global investors.
However, analysts noted that much of the positive sentiment had already been priced in, leading to a wave of profit-taking. Additionally, concerns arose about foreign investors potentially engaging in arbitrage by buying ADRs while short-selling domestic shares, which dampened investor sentiment.
External factors also contributed to the market's decline. Over the weekend, U.S. President Donald Trump officially announced the end of a ceasefire with Iran, escalating geopolitical tensions in the Middle East and triggering a sell-off in risk assets, including semiconductors.
Market observers believe that the combination of profit-taking following the ADR launch and external uncertainties has increased volatility. Nonetheless, there are no significant changes to SK Hynix's long-term performance outlook, driven by demand for AI memory and high-bandwidth memory (HBM). Investors are now focused on whether the influx of long-term foreign capital will lead to a reassessment of the company's stock value.
* This article has been translated by AI.
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