▲ Samsung/SK Hynix, ETF
Trading value and volume for single-stock leverage exchange-traded funds (ETFs) dropped significantly today, the first day of the raised basic deposit requirement from 10 million won to 30 million won.
According to the Korea Exchange, single-stock leverage ETFs based on Samsung Electronics and SK Hynix surged across the board by 48% to 60% at the close today.
KODEX SK Hynix Single Stock Leverage, which has the largest net assets, finished up 58.04% at 11,055 won, while TIGER's counterpart also surged 59.81% to close at 9,445 won.
Samsung Electronics leverage funds from KODEX and TIGER also spiked 51.17% and 51.18%, closing at 12,615 won and 11,550 won, respectively.
On the other hand, SOL SK Hynix Futures Single Stock Inverse 2X hit the daily 60% limit down (-59.95%), ending at 7,695 won, less than half of its price from the previous day.
The surge in leverage prices and plunge in inverse prices came as the underlying common stocks of Samsung Electronics and SK Hynix soared 26.81% and hit the daily price limit, respectively.
The total trading value for these 16 single-stock leverage products, including inverse funds, was tallied at approximately 3 trillion won.
This is about one-fourth of the previous day's 12.4 trillion won and one-fifth of the 15 trillion won recorded on the 29th.
It is even lower than July 27 (7.4 trillion won) and July 28 (8.2 trillion won), when trading values were relatively sluggish.
In the case of KODEX SK Hynix Single Stock Leverage, trading value stood at around 1.2 trillion won, about one-third of the previous day's 3.6 trillion won, while SOL SK Hynix Futures Single Stock Inverse 2X shrank to 565 billion won from 5 trillion won the day before.
Trading volume also saw a sharp decline, with KODEX SK Hynix Single Stock Leverage dropping from 488.89 million shares the previous day to 116.92 million shares today, and SOL SK Hynix Futures Single Stock Inverse 2X tumbling from 271.33 million shares to 59.52 million shares.
In overall ETF trading value rankings for the day, KODEX SK Hynix Single Stock Leverage and SOL SK Hynix Futures Single Stock Inverse 2X ranked 5th and 9th, respectively, a departure from their usual competition for the top two spots until the previous day.
As these leverage products spiked, a massive volume of sell orders was also unleashed.
KODEX SK Hynix Single Stock Leverage recorded net selling of 5.8789 trillion won, claiming the top spot for individual net selling among all ETFs.
KODEX Samsung Electronics Single Stock Leverage and TIGER SK Hynix Single Stock Leverage also recorded net selling of 2.1558 trillion won and 1.5371 trillion won, respectively, accounting for four of the top ten individual net-selling positions.
Net selling for these stocks alone exceeded 10 trillion won today.
Consequently, some analysts suggest that tightened regulations, such as raising the basic deposit requirement from 10 million won to 30 million won, are achieving the intended policy effect of substantially reducing trading volume, while others note that it is still too early to judge the policy's impact as it is only the first day.
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