Shares of South Korean memory chip maker SK Hynix fell 4.4% on Monday on the Seoul Stock Exchange.
The decline came despite the company's strong performance in its initial public offering on the Nasdaq stock market in the United States last Friday.
In the listing, SK Hynix raised more than US$26 billion through the sale of American Depositary Receipts (ADRs), which are certificates that allow foreign companies' shares to be traded on the American stock market.
The initial offering price was set at US$149 per share, but the shares opened at US$170, about 14% higher.
By the close of the first day of trading, SK Hynix shares were still up 12.8%, showing a very positive response from investors.
However, the company's share price in South Korea moved in the opposite direction. This could be because some investors chose to take profits after the high price increase during the US listing.
In addition, more cautious domestic market sentiment could also put pressure on share prices.
At the same time, South Korea's main stock market index, KOSPI, also recorded a decline of around 0.4% in early trading.
This shows that SK Hynix's share price weakness is not only influenced by company factors, but also occurs when the overall market is in a slightly weak state.
SK Hynix is one of the world's largest memory chip manufacturers and plays a key role in the development of artificial intelligence (AI) technology.
The growing demand for AI chips is expected to continue to be the main driver of the company's future growth, although its share price may experience fluctuations in the short term.
