Led by SM Entertainment and JYP Entertainment, K-pop stocks soared higher than other music stocks in a strong week for the broader markets. SM, home to artists such as Red velvet And aesparose 13.8 percent to 78,400 won ($53.76) after the news broke On Wednesday, January 15, the company will introduce a new girl group on February 24. Meanwhile, JYP gained 6.7 percent to 76,400 won ($52.39), while YG Entertainment and HYBE rose 5.6 percent and 3.7 percent, respectively.
The gains made by K-pop companies in recent weeks have outpaced the entire Korean stock market. In the week ended Jan. 17, South Korea’s four music companies posted an average gain of 7.5%, outpacing the 0.3% gain in the KOSPI Composite Index, a measure of all stocks traded on the South Korean Stock Exchange. South Korean stocks have rebounded from lows since the South Korean prime minister declared martial law on Dec. 3, which sparked political unrest and market instability in the country. The four K-pop companies are up an average of 20.6% from each company’s post-December. 3 point low, while the KOSPI has gained 6.9% since hitting a low point on December 9.
The 20-company Billboard Global Music Index rose 4.7% to 2,226.11, its second highest level since hitting 2,280.51 on Dec. 6 and the third-largest weekly gain. high last year. Only four of the 20 stocks in the index posted losses while the rest ended the week in positive territory. Radio companies led the way with an average gain of 13.3%. Multi-sector companies (labels and publishers like Universal Music Group and Warner Music Group) gain 4.3%. Live music companies followed with a 3.6% gain. Streaming companies saw an average loss of 1.1%.
Stocks were helped by news that the Consumer Price Index, a widely used measure of inflation facing consumers, rose by a lower than expected 3.2% in December. The producer price index, a measure of wholesale prices, also exceeded expectations in up just 0.2% last month. In the United States, the Nasdaq composite index rose 2.4% to 19,630.20 and the S&P 500 had its best week since the presidential election, gaining 2.9% to 5,996.66. In the UK, the FTSE 100 index rose 3.1% to 8,505.22. China’s Shanghai Composite Index rose 2.3% to 3,241.82.
iHeartMedia was the top music performer of the week, up 23.9% to $2.33 in the absence of major news. The only significant public development was Barclays’ announcement Friday in a regulatory filing that it increased its participation in the radio giant by 513% in the third quarter. Cumulus Media rose 9.1% to $0.84. The other radio company, satellite broadcaster SiriusXM, gained 6.9% to $22.27.
Spotify shares rose 5.7% to $485.53 on Friday after surpassing $500 per share on Thursday (January 16) – marking only the second time Spotify shares have hit the $500 mark in trading intraday. Investors reacted positively to UBS increasing its Spotify price target on Wednesday, January 15, to $540 from $485. Then, on Friday, Wolfe Research lowered Spotify’s rating from “outperform” to “comparable performance,” helping Spotify shares fall 1%.
Concert promoter Live Nation rose 5.5% to $135.61. The stock peaked at $136.21 on Friday, its highest level since Dec. 17 and just 3.5% below its 52-week high of $141.18. Live Nation will co-produce the FireAid benefit concerts to benefit victims of the Los Angeles wildfires. The Azoff family and AEG are also producers of the concerts, which will take place on January 30 at the Kia Forum and the Intuit Dome.
Abu Dhabi-based music streaming company Anghami was the week’s worst performer after falling 10.3% to $0.70, while French music streamer Deezer fell 5.3% to 1 .24 euro ($1.28) and LiveOne shares fell 1.7% to $1.18. LiveOne announcement On Thursday, it reached 500,000 Tesla users and plans to reach 550,000 Tesla owners – including 150,000 new ad-supported subscribers – by February 1.