SM Entertainment stocks have plummeted recently, due to the shocking news of EXO’s Luhan and Girls’ Generation’s Jessica leaving their groups.
SM Entertainment has had a rough year with the departure or hiatus of 4 artists from their respective groups. This includes EXO’s Kris and Luhan, f(x)’s Sulli and Girls’ Generation’s Jessica. The departure of these big stars from some of the most popular groups in such a short period of time has taken a toll on SM Entertainment financially.
After Jessica’s departure, the stock took a plunge (down 3.56%) but it was evident that Luhan’s leave was even more shocking as the company went down an additional 14.87%. As of 1PM KST on October 10, there has been no movement in the stocks for SM Entertainment. The reason for this being that KOSDAQ sets an upper/lower limit move on stocks as 15% per day. SM Entertainment stock dropped 14.87%, which is rounded up to 15% and therefore has reached it’s limit for the day.
SM Entertainment and YG Entertainment were close in terms of their market capitalization, most likely switching on and off between first and second place. However, this steep plunge has helped YG Entertainment take the lead financially as the largest entertainment company in Korea.
SM Entertainment’s market capitalization was around 756.76 billion at the beginning of the day on October 10th and is now around 644.23 billion. YG Entertainment’s market capitalization was around 774.91 billion at the beginning of the day and is now around 743.37 billion.
Google Finance, Korea Exchange via Koreaboo
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