Rumors Cause SM Entertainment’s Shares To Plunge Even Though Some Of It’s Performers, Including NCT Dream

Have recently found success in Japan, SM Entertainment’s (SM) stock price has crashed. Rumors that have been going about in the securities business, according to some analysts, might have affected the performance of the stock. SM closed at 81,900 KRW on the 4th, a decrease of 7,300 KRW (-8.18%) from the previous trading day. At first, the stock price held steady at the close of the previous day, even hitting 90,900 KRW once. But by 3 PM, it had experienced the biggest decline of the year, falling to 80,500 KRW (-9.75%). The abrupt decline was ascribed by stock analysts to a block transaction, or after-hours mass trading. HYBE sold some shares through a block sale on the 28th of last month in order to improve the “investment asset management efficiency.” After the market closed, SM revealed this information, implying that it wasn’t the primary reason behind the stock decline. Concurrently, there were conjectures that investor sentiment may have been impacted by gossip on SM’s musicians that was making the rounds on internet forums. Even while several entertainment stocks had slight changes, SM saw the worst decrease. Artists from the SM genre, including NCT and aespa, have been very successful lately. Released on the 27th of last month, Aespa’s debut full-length album, “Armageddon,” has topped charts in China, the UK, and Korea. In addition to reaching the top of several major domestic music charts, including Melon, Genie, and Bugs, their pre-released title tune “Supernova” also won five awards at music showcases. Their cumulative number of Spotify plays exceeded 48.1 million, demonstrating their broad appeal. Recently, NCT Dream wrapped off their first dome tour in Japan. They played five sold-out shows in Osaka, Tokyo, and Nagoya, drawing a total of 235,000 spectators. On the 5th, they will release “Moonlight,” their second Japanese single.