Morgan Stanley is under investigation by South Korean authorities over alleged suspicious trading of SK hynix shares before releasing a bearish report on the chipmaker’s outlook. On September 15, Morgan Stanley’s Asia-Pacific desk published a report titled ‘Winter Looms’, downgrading SK hynix from “overweight” to “underweight” and slashing its target price nearly in half to KRW120,000 (USD91.47), citing weak DRAM demand and an oversupply of AI-specific memory. Two days prior to the report’s release, Morgan Stanley’s Seoul branch reportedly sold 1.01 million shares of SK hynix. The Korea Exchange and the Financial Supervisory Service are investigating potential insider trading violations. SK hynix shares dropped 6.1% on September 19, the first trading day after the report, leading to backlash from local investors.
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