SK Hynix ADR-related catalyst evaporates and share price 8% plunges, Kospi 7,000 collapse
7month 13day, SK Hynix plunged on news that ADR-related catalysts had evaporated and its earnings outlook was lowered, sending the Kospi below the 7,000line. On that day, sell-side sidecars and circuit breakers were triggered one after another, and a sharp drop centered on large-cap stocks appeared.
7month 13day, SK Hynix’s share price plunged on news that ADR-related hopeful factors had evaporated and its earnings outlook was lowered, sending the Kospi below the 7,000line. As a result, index volatility widened significantly.
SK Hynix was reported to have shown a downward revision in its earnings outlook after reports that ADR-related catalysts had evaporated. The related news was immediately reflected in investor sentiment.
KB Securities said that a revaluation of SK Hynix ADR had begun, and also reported that leveraged ETFs were being launched one after another. Changes in trading volume following the launch of leveraged products were observed.
In the morning, as KOSPI moved mixed amid Middle East jitters, SK Hynix fell by 2 before buying and selling flows suddenly reversed.
By afternoon, SK Hynix 8 plunged, and its share price fell below 200won. A selling-side circuit breaker was triggered. Weakness in major tech stocks also dragged on the market.
On the same day, KOSPI at one point plunged by 8 and triggered a circuit breaker, then fell to 9 and broke below the 7,000 line. Some stocks recorded their largest daily declines on record.
In the market, major stocks including Samsung Electronics also fell together, adding downward pressure on the index. Wider trading value and bid-ask spreads were observed.
Overall, on the 7 session, selling triggered by SK Hynix-related news spread across the index, sharply increasing short-term volatility. Along with moves to list leveraged ETFs, it was a day when intraday volatility in risk assets intensified. ]},13es-ES