Because the won-dollar trade price fell sharply in a single day, South Korea’s retail buyers, generally known as “seohakgaemi” for his or her give attention to Western markets, aggressively elevated their positions in U.S. fairness exchange-traded funds (ETFs). The drop within the greenback lowered the efficient entry value for won-based buyers, sparking a wave of “dip-buying” into dollar-denominated property.
In accordance with the Korea Alternate on Jan. 16, particular person buyers recorded internet purchases of 36.1 billion received (roughly $24.49 million) within the TIGER U.S. Nasdaq 100 ETF, which tracks the Nasdaq 100 index, the day past. This represents a rise of about 3.7 occasions from the 9.6 billion received on the prior buying and selling day.
Market members cited the latest weak point in U.S. equities, mixed with ETF value changes triggered by the exchange-rate decline, as key drivers of the surge in shopping for. Analysts mentioned buyers’ expertise, significantly the rebound within the won-dollar price after the federal government’s verbal intervention late final yr, has created a studying impact that inspired swift inflows.
Within the offshore non-deliverable ahead (NDF) market in New York, the won-dollar trade price closed at 1,462.75 per greenback on Jan. 14 (native time), down 14.75 received from the earlier session, based on the international trade market. Within the home market, the speed ended the daytime session at 1,469.7 received per greenback, down 7.8 received from the earlier shut.
Related traits have been seen in different Nasdaq 100 ETFs. Retail buyers posted internet purchases of 35.9 billion received within the KODEX U.S. Nasdaq 100 ETF, greater than double the 16.9 billion received within the earlier session. Web shopping for of the ACE U.S. Nasdaq 100 ETF rose from 3 billion received to 10.9 billion received, whereas the RISE U.S. Nasdaq 100 ETF elevated from 882.68 million received to 2.9 billion received.
Inflows have been additionally recorded into ETFs monitoring the U.S. Commonplace & Poor’s 500 index. Web retail purchases of the TIGER U.S. S&P 500 ETF rose 46% to 67.4 billion received from 46.1 billion received on Jan. 14. Web shopping for of the KODEX U.S. S&P 500 and ACE U.S. S&P 500 ETFs additionally elevated from the earlier session.
