The recent buzz around BLACKPINK’s potential music comeback has sparked notable fluctuations in the stock market, particularly affecting YG Entertainment shares. This development is set against a backdrop of a broader slump in K-pop stocks.
K-Pop Stocks Face Decline
For the week ending on October 17, major South Korean companies contributed significantly to the underperformance of music stocks. The Billboard Global Music Index (BGMI), which tracks 19 companies, reported a decrease of 0.5%, settling at 2,885.17.
Historical Trends
This decline marks the BGMI’s fourth consecutive week of falling numbers, a phenomenon that has occurred previously in both July and August of 2023 and 2024. Despite this setback, the index maintains a year-to-date increase of 33.8%, outpacing significant benchmarks like the Nasdaq composite and S&P 500.
YG Entertainment’s Share Price Drops
Amid the speculation about BLACKPINK’s comeback, YG Entertainment saw its stock plummet by 9.6%, closing at 90,000 KRW (approximately $63.30). This decline came after YG denied reports suggesting that a decision regarding the group’s new music release was finalized.
- Previous week performance: YG Entertainment shares fell by 9.6%.
- Current share price: 90,000 KRW ($63.30).
- Recent price target: Hana Securities increased its target by 12% to 145,000 KRW ($101.99).
- Year-to-date increase: 95.9%.
K-Pop Competitors
Other major players in the K-pop industry also faced challenges:
- SM Entertainment: Down 7.8% to 116,400 KRW ($81.87), despite a year-to-date gain of 60.3%.
- JYP Entertainment: Decreased by 4.5% to 71,700 KRW ($50.43), with a modest year-to-date increase of 5.8%.
- HYBE: Fell 1.1% to 269,500 KRW ($189.56), though it has risen 34.1% this year.
Global Market Overview
Despite the slump in K-pop stocks, several global markets showed mixed results:
- U.S. markets: Nasdaq composite up 2.1% and S&P 500 up 1.7%.
- UK’s FTSE 100: Down 0.8%.
- South Korea’s KOSPI: Jumped 3.8% to 3,748.89, reaching a record high on October 16.
- China’s Shanghai Composite: Down 1.5% to 3,839.76.
Investors and fans alike are closely watching how these developments will unfold, particularly regarding BLACKPINK’s upcoming announcements and their impacts on YG Entertainment’s stock performance.
