Sungho Electronics shares on the KOSDAQ were weak early on the 11th. The decline appears to be due to sell orders after news that the stock was designated as an investment warning issue.
As of 9:29 a.m. that day, Sungho Electronics was trading at 5,500 won, down 750 won (12.00%) from the previous session.
Korea Exchange (KRX) said after the close on the 10th that Sungho Electronics would be designated as an investment warning issue effective the 11th. If the stock rises an additional 40% or more over the next two sessions and closes above the day before the designation (6,250 won), trading may be halted.
Sungho Electronics, a film capacitor manufacturing and sales company, hit the upper price limit for two straight sessions through the 9th on news on the 8th that it would acquire AI data center parts company ADS Tech for 280 billion won. It also jumped 24.75% the previous day.
With the share price soaring 110% over three sessions from 2,970 won before the acquisition announcement to 6,250 won, it is interpreted that the exchange judged the stock overheated.