Korea / KOSPI positioning:
Corporate buybacks have been the only meaningful source of inflows in recent weeks, while all major investor groups have been net sellers.
Foreign investors have led YTD outflows, primarily driven by selling Samsung Electronics and SK hynix.
Chart 1: Leveraged ETF AUM has collapsed back to the Iran war market lows in March.
Chart 2: Trading activity in leveraged ETFs has collapsed since new regulations were introduced in July.
Chart 3: Margin loan balances are below the June peak, while margin loans as a % of market cap are at ~0.6%. This highlights that market caps are still relatively elevated.
[GS Research]
Corporate buybacks have been the only meaningful source of inflows in recent weeks, while all major investor groups have been net sellers.
Foreign investors have led YTD outflows, primarily driven by selling Samsung Electronics and SK hynix.
Chart 1: Leveraged ETF AUM has collapsed back to the Iran war market lows in March.
Chart 2: Trading activity in leveraged ETFs has collapsed since new regulations were introduced in July.
Chart 3: Margin loan balances are below the June peak, while margin loans as a % of market cap are at ~0.6%. This highlights that market caps are still relatively elevated.
[GS Research]