LG Electronics is experiencing a sharp decline in its stock price during early trading. This drop is attributed to profit-taking following a surge of over 80% in the company's stock over the past two weeks.
As of 10:05 a.m. on June 4, LG Electronics shares were trading at 334,250 won, down 14.84% from the previous trading day, according to the Korea Exchange. The stock price skyrocketed from 181,000 won on May 20 to 392,500 won on June 2, marking an increase of approximately 117%. During this period, the stock hit its daily upper limit three times on May 21, May 29, and June 1.
Market analysts suggest that the recent surge in stock prices has led to increased profit-taking, resulting in a concentration of short-term selling. Given that the stock price has more than doubled in a short time, more investors are likely to cash in on their profits.
Meanwhile, international credit rating agency S&P upgraded LG Electronics' credit rating from BBB to BBB+ on June 2. S&P cited the company's solid growth in its core business, reduction in debt, and improvement in financial structure as reasons for the upgrade. The agency also anticipates that LG Electronics will maintain stable performance over the next two years through enhanced competitiveness in premium appliances and expansion into subscription and B2B markets.
* This article has been translated by AI.
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