With the continued rise in the share price of subsidiary SK hynix, SK Square shares are climbing in tandem. On top of that, with a 100 billion won share cancellation scheduled on the 24th, SK Square is showing intraday strength in the 7% range.
As of 9:44 a.m. that day, SK Square was trading at 304,500 won on the Korea Exchange, up 21,500 won (7.6%) from the previous session.
This is analyzed as being due to expectations that SK Square's net asset value (NAV) will expand as the value of SK hynix equity held by SK Square rises. SK Square is an investment company that holds equity in SK hynix, and when the value of its core subsidiaries increases, NAV grows proportionally.
News of the share cancellation also appears to be pushing up the stock price. SK Square will cancel 100 billion won worth of treasury shares purchased between Apr. and Sept. on the 24th. On the 14th, it also began a new 100 billion won treasury share purchase.
The streamlining of noncore subsidiaries is also a positive factor. Shin Eun-jung, an analyst at DB Financial Investment, said, "SK Square sold a 17.3% equity stake in Dreamus Company for 30.3 billion won in Oct., sold its equity in Incross to SK Networks, and had subsidiary SK Planet acquire 11Street 100%, reshaping its portfolio."