SK Hynix Plunges 15.37% on July 13, Posts Biggest Daily Drop Since 1996 IPO

According to reports, SK Hynix experienced a historic 15.37% decline on July 13, marking its largest single-day drop since its December 1996 listing. The sharp fall was driven by a divergence in investor flows following the company's successful Nasdaq ADR (American Depositary Receipt) debut on July 10.

Analysts attributed the decline to a strategic arbitrage by foreign investors. UBS had recommended buying Hynix ADRs while selling shares on the Korean exchange (KOSPI), and foreign investors followed suit, offloading over 3.1 trillion Korean won in two trading sessions (July 10-13). Meanwhile, Hynix ADRs on Nasdaq rose 12.76% from their 149-dollar offering price to close at 168.01 dollars on the first trading day, according to equity research.