Capital Group's massive sell-off sends SK hynix and leveraged ETFs into turmoil
U.S. asset manager Capital Group sold a large amount of its stake in SK hynix. The news, combined with expectations for earnings, caused significant volatility in SK hynix's share price and related leveraged products.
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U.S. asset manager Capital Group sold a large amount of its stake in SK hynix. The sale was confirmed in the market on 9. The related transaction drew concentrated attention to the stock.
SK hynix's share price recovered 200ten thousand won. The stock fluctuated repeatedly during the session. Trading by investors continued actively.
In the previous day's premarket, Samsung Electronics rose 6%. Over the same period, SK hynix rose 8%. Major stocks in the South Korean market showed strength together.
The leveraged product tracking ACE 2the stock surged 39%. A sharp decline was also confirmed in single-stock leveraged ETFs. Price volatility in leveraged products expanded significantly.
Some SK hynix-linked leveraged ETFs surged as much as 50% just before the market close. Sharp price fluctuations were observed in certain leveraged products. Related trading activity and price movements were concentrated at the market close.
Securities firm KB forecast that SK hynix's 2quarter operating profit would increase year on year by 649%. The forecast was reported to have fueled expectations of an earnings surprise. Securities firms' estimates and institutional ownership changes were reflected in the market simultaneously.