Cosmetics and Gold ETFs Outshine Semiconductors in Korean Market
The South Korean stock market has seen a shift in investor demand this month, with ETFs tied to gold, cosmetics, and biotech outperforming those focused on semiconductors. The SOL Cosmetics TOP3 Plus ETF rose 30.09%, ranking fourth among domestically listed ETFs, while the TIGER Cosmetics and HANARO K-Beauty ETFs gained 23.51% and 17.93%, respectively.
The strong returns are attributed to improving earnings in these sectors, with major cosmetics companies posting significant gains. Kolmar Korea achieved a quarterly operating profit of over 100 billion won in the second quarter, while Silicon2 topped 400 billion won in quarterly revenue for the first time.
Precious-metal ETFs also saw significant growth as gold prices climbed to $4,680.60 an ounce on the New York Mercantile Exchange on May 21st, its highest level in about three months. The HANARO Global Gold Miners ETF rose 29.58% this month for the fifth-highest return.
Biotech ETFs, which lagged last month, rebounded with a 20.35% gain for the TIGER KOSDAQ150 Biotech ETF, ranking 10th by return.