Kaohsiung KOSPI Index Surges Nearly 10% Over Two Days, Institutions Say Approximately 75% of Leveraged ETF Deleveraging Completed

Odaily Planet Daily News 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%. Among individual stocks, SK Hynix rose over 9% at one point, and Samsung Electronics gained more than 6%, with chip stocks leading the broader market.

A recent report from JPMorgan indicated that approximately 75% of the deleveraging process for Korean leveraged ETFs has been completed. Data from the Korea Financial Investment Association shows that as of July 16, margin balances in South Korea had fallen to 33.4 trillion won (approximately $22.6 billion), a decline of 13% from the peak at the end of June.

Furthermore, as of Wednesday morning, net foreign purchases of Korean stocks had exceeded $1 billion, marking the first significant return of foreign capital in about a month. (Bloomberg)