Tuesday, April 5, 2011

SNSD's "Mr. Taxi" helps SM stock prices

With the recent earthquake in Japan, many businesses around the world have been negatively affected through the economic downturn. The production for many Japanese companies are down, power supplies are more limited, and there is still the looming crisis of the nuclear plants that holds Japan from making a rebound in the financial sector. With Japan's deplorable fate, even the Hallyu wave has been seemingly affected. Many people fear that with the disaster in Japan, there will be no way for the K-pop wave to enter, as there are much more pressing needs for the Japanese people other than music. As such, many major entertainment companies like YG, JYP, and SM Entertainment have experienced drops in the stock prices, since promotions might not be possible any longer in Japan.

However, breaking out of the slump in marketing comes the news that SM Entertainment has managed to come back from the weakened prices these past two days with a recorded strong trading in markets. On the 5th of April, Samsung Securities, NH Investment & Securities, Daewoo Securities, and Kiwoom Securities noted a purchase influx for SM Entertainment's stocks. The market shares for SM Entertainment rose 1,150 KRW, which was 6.35%, and the high of the day was a recorded 19,250 KRW when the trading closed. The amount of stock that was traded on April 5th was roughly twice the previous day's 740,000 shares. On the 5th, 1,270,000 shares for SM Entertainment were traded.

The significance of the increase in SM Entertainment comes from the reflection that after news of the earthquake in Japan, SM Entertainment's stock had dropped from 20,000 KRW down to 16,000 KRW, a drop in price equivalent to 3.68 USD. The sharp drop had led many people to have their faith in the Hallyu wave shaken until the past two days, when SM Entertainment's stock picked back up after the announcement of SNSD's newest Japanese single "Mr. Taxi" still proceeding in Japan despite the disaster.

Since the proclamation, on April 4th, stocks for SM Entertainment rose about 4% and on April 5th rose roughly 6%.

According to SM Japan HMV and other sites, SNSD's new Japanese single "Mr Taxi" is scheduled for release on April 27th.

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