KOSPI 1years 165% surge prompts overseas column to warn of 'Squid Game'
Overseas columnist Spencer Jakab warned that South Korea's stock market could become risky amid the KOSPI's recent 1-year 165% surge, concentration in certain stocks, and the spread of single-stock leveraged ETFs. The column pointed out that there were 2% or more daily swings on 77trading days.
Overseas columnist Spencer Jakab warned that South Korea's stock market could be risky, like 'Squid Game.' He cited the KOSPI's recent 1-year 165% surge and concentration in certain stocks as the background.
The column pointed to the concentration of investment funds in Samsung Electronics and SK hynix. It explained that the rising market is structured to depend heavily on the two stocks.
It wrote that as single-stock leveraged exchange-traded funds (ETFs) spread, the tendency for sharp rises and falls in individual stocks to extend across the broader index has increased.
The column reported that there were days on which 2% or more, and 77trading days. It went on to assess the rise itself as a succession of extreme volatility.
It was also mentioned that the Korean market recorded the world's highest returns over the past 1years. However, it was pointed out that those returns emerged alongside increased volatility.
According to the financial investment industry, concerns are being raised within the industry about concentration and the spread of leveraged products. It reported that related discussions are continuing.
This is a summary of the report published on 7month 8day. Related content may be updated if additional company announcements or disclosures are issued.
Sources: 파이낸셜뉴스 증권
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.