SK Hynix Falls Below 2 Million Won... 7 of Top 10 Dropping ETFs Are '2x Bets' [Theme+]

Courtesy of Newsis. [Financial News] As the domestic stock market plummeted due to simultaneous selling by foreign and institutional investors, SK Hynix fell below the 2 million won mark during trading.
With most of the top-performing exchange-traded funds (ETFs) on this day consisting of single-stock leverage products for SK Hynix, the volatility of high-risk products was highlighted once again. A sell-side circuit breaker was also triggered in the securities market.
48% from the previous trading day. 85% from the previous day, but widened its losses as selling pressure from foreign and institutional investors intensified.
23%, dropping below the 7,200 mark. At 10:34 AM on this day, a sell-side circuit breaker was triggered, temporarily suspending the validity of program sell orders.
This marks the 18th time this year alone. The KOSPI circuit breaker is a market stabilization mechanism that suspends the validity of program sell orders for five minutes if the KOSPI 200 futures price falls by more than 5% relative to the reference price and remains in that state for at least one minute.
3 billion won, respectively, in the securities market. Only individual investors absorbed the volume by net buying 829 billion won worth of shares.Leading semiconductor stocks also took a direct hit. 39% from the previous day, dropping below the 2 million won mark during the session.Samsung Electronics also fell by more than 3%, dropping below 280,000 won. ■ Top Declining ETFs: 7 out of 10 are SK Hynix Leverage ETFs Leverage ETFs recorded much larger declines than their underlying indices.
On this day, SK Hynix single-stock leverage ETFs accounted for 7 of the top 10 ETFs by decline. 25%) all plummeted.Compared to the 8% decline in SK Hynix's underlying index on the same day, the magnitude of the loss nearly doubled due to the 2x leverage structure. "We believe that the sharp drop in major semiconductor stocks has further amplified ETF price volatility, given that recent trading has been concentrated on single-stock leverage ETFs," said a securities industry official.■ Supply and Demand Pressure Acts More Than Expectations for American Depositary Receipts (ADRs) Analysis suggests that SK Hynix's weakness on this day was the result of worsening foreign investor supply and demand and risk aversion sentiment having a greater impact than expectations for the ADR listing. Previously, expectations for an influx of global investors and a revaluation of valuations for SK Hynix grew following its listing on the US NASDAQ ADR.
Kim Soo-hyun, Head of Research at DS Investment & Securities, analyzed, "The SK Hynix ADR is structurally similar to TSMC," adding, "If it receives a valuation comparable to Micron as US passive funds flow in, the underlying stock can expect a gain of at least 8–18% solely from the ADR listing event. " However, assessments emerged that on this day, the market was dominated by deteriorating supply and demand—including concerns about the semiconductor industry peaking out, a correction in global AI semiconductor stocks, profit-taking by foreign and institutional investors, and leveraged ETFs and short selling—rather than expectations for the ADR listing.
■ "Re-pricing Process Rather Than a Bear Market" The securities industry interprets this correction as a phase of supply and demand readjustment rather than a trending bear market.Kim Doo-eon, a researcher at Hana Securities, stated, "The current correction is not the start of a bear market, but rather a re-pricing process where prices and supply and demand regain equilibrium after the initial rally." "It is close," he said, diagnosing that "while foreign selling, the National Pension Service's rebalancing, and the slowdown in retail liquidity are delaying the index's recovery, the direction of semiconductor profits has not yet changed.
" He added, "Going forward, the market needs to confirm the bottom of SK Hynix's ADR premium, memory prices, profit estimates, and customer deposits," and noted, "If these indicators are maintained, this correction could be a process preparing for a second rally rather than the end of the bull market.
"
Courtesy of Newsis. [Financial News] As the domestic stock market plummeted due to simultaneous selling by foreign and institutional investors, SK Hynix fell below the 2 million won mark during trading.
Courtesy of Newsis. [Financial News] As the domestic stock market plummeted due to simultaneous selling by foreign and institutional investors, SK Hynix fell below the 2 million won mark during trading.
dschoi@fnnews.com Choi Doo-sun Reporter