KOSPI Index Rises Nearly 10% Over Two Days; Institutions Say About 75% of Leveraged ETF De-leveraging Completed

Odaily Odaily reports that South Korea's KOSPI index rose as much as 6.2% during trading on Wednesday, bringing its cumulative gain over the past two trading days to nearly 10%. SK Hynix rose over 9% at one point, while Samsung Electronics gained more than 6%, with chip stocks leading the market rally.

A recent report from JPMorgan indicated that approximately 75% of the de-leveraging process for leveraged ETF positions in South Korea has been completed. According to data from the Korea Financial Investment Association, as of July 16, the balance of margin loans in South Korea fell to 33.4 trillion won (approximately $22.6 billion), down 13% from its peak at the end of June.

Additionally, as of Wednesday morning, foreign investors had net purchased over $1 billion worth of South Korean stocks, marking the first significant capital inflow in about a month. (Bloomberg)