SK Securities(001510) rises for a second straight day on news that it will broker SK hynix's entrusted share buyback and cancellation.
As of 9:10 a.m. on the 21st, SK Securities was trading at 3,335 won on the Korea Exchange, up 525 won (18.68%) from the previous session. SK Securities jumped 29.79% to close at the upper limit (the top of the daily price band) the day before and remains strong today.
After the close on the 19th, SK hynix decided to buy 24.07 million common shares on the market and cancel all of them. The planned acquisition amount is 4.004304 trillion won. The shares slated for cancellation are about 3.3% of the current 730,492,365 shares outstanding.
The share buyback runs from today through Nov. 19. SK Securities will handle the entrusted brokerage, and the daily buy order limit is 2,407,000 shares. After the acquisition period ends, SK hynix plans to cancel all the treasury shares purchased this time in one go. The specific cancellation timing has not yet been set.
The market is focusing on SK Securities taking on the brokerage of the share buyback and cancellation. Given the 4 trillion won scale of the large contract, expectations that related fee revenue will drive an earnings improvement appear to be boosting investor sentiment.