Here is a report on foreign investors’ purchases of stocks from big entertainment agencies, HYBE, SM, YG, and JYP, in recent months.
According to the Korea Exchange on April 9th, foreign investors already purchased 51.25 billion won worth of HYBE shares in April. In terms of net purchase amounts, HYBE ranks third on KOSPI, following Samsung Electronics and Korea Aerospace Industries. In particular, on the 6th, foreign investors purchased 32.19 billion won worth of shares in just one day, making the stock price increase to 205,000 won, rising 14,300 won (7.5%) from the previous day.
During the same period, foreign investors also purchased 17.5372 billion won worth of YG Entertainment shares and 8.47240 billion won worth of JYP Entertainment shares. These two agencies ranked third and twelfth, respectively, in terms of net purchase amounts on KOSDAQ. The total net purchase amount for these three stocks (HYBE, YG, and JYP) amounted to 77.22686 billion won.
The stock prices of these entertainment companies have been steadily rising since the beginning of this year. HYBE witnessed the biggest increase of 47,500 won (28.02%) from 169,500 won to 217,000 won. YG Entertainment (27.99%) and JYP Entertainment (14.88%) also recorded rises of more than 10% in stock prices from the beginning of this year.
The strong stock performance of these entertainment companies was determined by the investors’ high expectations for improved profits from artists’ activities. First, YG Entertainment is launching the debut of its rookie girl group BABYMONSTER. Since the opening of their YouTube channel on December 28th last year, BABYMONSTER has already attracted 1.66 million subscribers. In addition, current artists, such as BLACKPINK Jisoo, TREASURE, and G-Dragon, are expanding their activities and gearing up for comebacks.
Meanwhile, HYBE is also preparing to debut boy groups under its sub-labels KOZ and Pledis within this year. They also plan to introduce a global girl group in collaboration with Universal Music Group (UMG).
However, stock performance in the past month showed a seemingly confusing pattern. While HYBE and YG recorded increases of 22.95% and 5.31%, respectively, JYP witnessed a 1.66% decline. In particular, SM Entertainment experienced a significant decline of 57,300 won (36.99%) from 159,400 won to 97,600 won after solving its management dispute. This sharp stock price plunge was due to a net selling trend by foreign investors. Many foreign investors have been selling SM stocks for five consecutive trading days in April, causing the stock price to go down.