By Lee Kyung-min
About 160 billion received ($120 million) in Samsung Group-themed exchange-traded funds (ETFs) have been drained over the previous two weeks, gripped by fears of a dent in company earnings within the third quarter, market watchers mentioned Wednesday.
Additional advancing the pessimism is the appreciation of the Korean foreign money in opposition to the greenback, a supply of declining value benefit for the worldwide chip powerhouse. This in flip would weigh closely on the share costs, already reeling from a 15 % four-week droop to a mid-60,000 received stage, a 52-week low.
Based on Korea Securities Computing Corp. an IT and knowledge supplier, six Samsung Group-themed ETFs registered a internet mixed lower of 159.2 billion received as of Sept. 12.
Chief among the many losses was KODEX Samsung Group Worth with a internet drop of 119.6 billion received in fund valuations.
The product, designed to observe the efficiency of six Samsung associates, included Samsung Electronics holdings of roughly 25 % of the full.
Equally, KODEX Samsung Group additionally logged a internet lower of fifty.9 billion received in funds. About 22 % of the portfolio was invested within the semiconductor affiliate of the group.
Market watchers say softer-than-expected gross sales of smartphones and desktop computer systems will lengthen constrained reminiscence chip demand.
Moreover, the speedy decline of the one-time shock progress issue within the second quarter can also be an element, led by greater-than-feared allocation to loss reserves put aside for potential reductions in stock valuations.
An rising variety of brokerages proceed to advocate underweight positions.
Eugene, Kiwoom, DB, KB, Hyundai Motor and Korea Funding have revised the goal worth all the way down to as little as 91,000 received, a 17 % lower from the earlier goal of round 100,000 received.
A Kiwoom Securities report referred to as for warning in opposition to an extra steep fall in share costs.
“The current downtrend in worth trajectory was sparked by issues about third-quarter efficiency, however has since accelerated attributable to total weak circumstances within the semiconductor market,” it mentioned.
“The costs can rebound on the first signal of DRAM market energy.”
DRAM is brief for dynamic random-access reminiscence, a sort of semiconductor reminiscence chip.
