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What is the story about?
South Korea's stock exchange has issued another warning over the rapid rise in shares of SK Hynix Inc., which have surged as much as 230% on a year-to-date basis on the artificial intelligence boom.
The Korea Exchange has issued an "investment caution" on the stock for one day. This is a similar warning to the one issued in November. Such a warning does not halt trading but is a message that investors should proceed with caution.
SK Hynix is a key supplier of high-bandwidth memory to Nvidia, the world's most valuable company. Chip and AI-related stocks have remained volatile in recent times on concerns of a bubble building up within that space.
Exchanges generally issue such warnings due to sudden and unexplained large changes in share price or volumes.
The stock had gained 6% on Monday as well on reports that the company is planning to issue American Depository Receipts (ADRs), to which it said that "nothing is confirmed" yet.
The exchange caution is a pre-warning before a higher-level alert is triggered, which would limit margin trading. If a stock under investment caution meets one of the eight criteria, such as rising 100% in three sessions, the bourse will issue an investment alert. Following that, if the stock rises 40% for two sessions, trading can be halted for one day.
(With Inputs From Agencies)
The Korea Exchange has issued an "investment caution" on the stock for one day. This is a similar warning to the one issued in November. Such a warning does not halt trading but is a message that investors should proceed with caution.
SK Hynix is a key supplier of high-bandwidth memory to Nvidia, the world's most valuable company. Chip and AI-related stocks have remained volatile in recent times on concerns of a bubble building up within that space.
Exchanges generally issue such warnings due to sudden and unexplained large changes in share price or volumes.
The stock had gained 6% on Monday as well on reports that the company is planning to issue American Depository Receipts (ADRs), to which it said that "nothing is confirmed" yet.
The exchange caution is a pre-warning before a higher-level alert is triggered, which would limit margin trading. If a stock under investment caution meets one of the eight criteria, such as rising 100% in three sessions, the bourse will issue an investment alert. Following that, if the stock rises 40% for two sessions, trading can be halted for one day.
(With Inputs From Agencies)
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