Retail Investors Unload Samsung Electronics-SK hynix Leveraged Bets; Foreigners and Institutions Step In

[Financial News] Foreign and institutional investors are actively buying as retail investors exit leveraged positions in Samsung Electronics and SK hynix, creating divergent investment flows. Analysts say retail investors are taking profits amid a rebound in semiconductor stocks, while foreign and institutional investors are positioning themselves for further gains.
According to Koscom on the 23rd, single-stock leveraged products tied to Samsung Electronics and SK hynix dominated the list of ETFs with the highest net selling by retail investors over the past week, from the 16th to the 22nd. KODEX SK hynix Single-Stock Leverage ranked fourth with net selling of ₩108.4 billion, while KODEX Samsung Electronics Single-Stock Leverage and TIGER ETF SK hynix Single-Stock Leverage ranked fifth and sixth, with net selling of ₩60.6 billion and ₩55.4 billion, respectively.
Retail selling has also continued in the cash-equity market. During the period, individual investors sold ₩4.7396 trillion worth of Samsung Electronics shares and ₩4.6906 trillion worth of SK hynix shares.
Securities analysts believe retail investors are strongly motivated to realize profits by the rebound, given that they have sold both leveraged products and underlying shares of Samsung Electronics and SK hynix. Over the past week, Samsung Electronics rose 11.27%, while SK hynix gained 8.88%.
An industry insider said, "After stock prices had moved sluggishly for some time and finally began to rise, investors appear to be closing out their positions to reduce their accumulated losses or make even a small profit. Investors who entered the market late and are facing large losses, in particular, have no choice but to feel increasingly pressed."
By contrast, foreign and institutional investors actively bought leveraged products, absorbing the shares sold by retail investors.
The ETF that foreign investors bought most heavily over the past week was TIGER ETF SK hynix Single-Stock Leverage, with net purchases totaling ₩68.4 billion. KODEX SK hynix Single-Stock Leverage ranked third at ₩60.2 billion, followed by TIGER ETF Samsung Electronics Single-Stock Leverage in sixth place at ₩33.2 billion and KODEX Samsung Electronics Single-Stock Leverage in seventh place at ₩20.3 billion.
Among institutional investors, KODEX SK hynix Single-Stock Leverage and KODEX Samsung Electronics Single-Stock Leverage ranked fifth and sixth in net purchases, at ₩62.3 billion and ₩46 billion, respectively.
However, foreign and institutional investors took different positions in the cash-equity market. Institutions bought ₩2.3934 trillion worth of Samsung Electronics shares and ₩462.7 billion worth of SK hynix shares, recording net purchases of both the underlying stocks and leveraged products. Foreign investors, meanwhile, recorded net sales of ₩153.7 billion in Samsung Electronics and ₩1.415 trillion in SK hynix, showing a different investment pattern.
An industry insider said, "Institutions are clearly betting on further gains, while foreign investors appear to be waiting for a definite signal of a rebound. However, they seem to be buying leveraged products to respond to short-term gains, judging that stock prices will not fall any further." 
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