[Featured Stock] 'Avatar 2' One Day Before Release... CJ CGV Drops 7% Intraday

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] CJ CGV, which had been on a rising trend for six consecutive trading days, is currently plummeting more than 7% intraday.

At 10:35 a.m. on the 13th, CJ CGV was trading at 19,400 KRW, down 7.16% from the previous trading day. The company's stock price fell as low as 19,100 KRW during the session.

Until now, CJ CGV had shown a sharp rise in its stock price ahead of the release of the sequel to "Avatar," titled "Avatar: The Way of Water." The anticipation that audiences would flock to theaters for the first sequel in 13 years pushed the stock price up. However, with the release just one day away, profit-taking sales mainly by foreign investors and institutions caused the stock price to decline. At this time, foreign investors and institutions sold a net 17,000 shares and 3,000 shares, respectively.

The burden of outstanding CBs (convertible bonds) is also limiting the stock price increase. The CBs worth 400 billion KRW issued by the company in July this year have a low subscription rate, resulting in securities firms holding about 90% of the volume. The conversion price of these CBs is 22,000 KRW per share, and if all the bonds are converted into stock, 16.77 million new shares will be issued.