Business · Markets · 3 hrs ago
Top Korean investors buy inverse ETF and fallen chip stocks
Kiwoom’s top-performing investors bought an inverse ETF on October 22, when South Korea’s stock market fell sharply.
The group consisted of accounts with at least 10 million won in investment principal that ranked in the top 1% by returns the previous month.
KODEX Inverse was their biggest net purchase, followed by Samsung Electronics, Samsung SDI, SK Hynix and KODEX 200.
The ETF is designed to move opposite to the daily return of KOSPI 200 futures, so it can gain when the index falls.
KODEX Inverse rose 3.58% that day as the market dropped again after rebounding the day before.
The investors both hedged against further declines and bought heavily fallen shares, showing two different responses to the sell-off.
No further market moves or next steps were specified.
Top-performing Korean investors bought the KODEX Inverse exchange-traded fund most heavily during a sharp market decline on October 22.
They also bought shares in Samsung Electronics, Samsung SDI and SK Hynix after the stocks fell.
The purchases reflected both preparation for further market declines and attempts to buy shares at lower prices.
Kiwoom Securities identified the trades among accounts in the top 1% by previous-month returns.
- Who
- Kiwoom Securities customers whose accounts ranked in the top 1% by returns in the previous month and had at least 10 million won in investment principal.
- What
- They bought KODEX Inverse most heavily, while also buying major chip and battery stocks that had fallen.
- When
- October 22.
- Where
- South Korea’s stock market.
- Why
- They appeared to prepare for further declines while buying stocks that had fallen sharply at lower prices.
This story does not have two clearly opposing sides.
Top-performing investors bought KODEX Inverse most heavily and also bought shares in Samsung Electronics, Samsung SDI and SK Hynix.
Kiwoom Securities reported the previous day’s net-purchase rankings.
- Top net purchase
- KODEX Inverse
- Second to fifth
- Samsung Electronics, Samsung SDI, SK Hynix and KODEX 200
- Investor group
- Top 1% of accounts by previous-month returns, with at least 10 million won in investment principal
- KODEX Inverse move
- Rose 3.58% on October 22
- Inverse ETF structure
- Tracks the daily return of the KOSPI 200 futures index in the opposite direction