Korean Retail Investors Flee Semiconductors for Gold and Nuclear Power
Retail investors in South Korea are diversifying their portfolios by shifting away from semiconductor exchange-traded funds (ETFs) and into gold, nuclear power, secondary batteries, and other sectors.
This month, individual investors sold a net of $179.1 billion worth of KODEX SK hynix Single Stock Leverage, while buying a total of $21.7 billion in ACE KRX Gold Spot ETF, according to the Korea Exchange and Koscom's ETF CHECK on November 14th.
The shift away from semiconductors, which were previously market leaders, is attributed to the loss of momentum in the KOSPI rally, with investors locking in gains on chip stocks that led the market in the first half.
Brokerages are highlighting the investment case for non-chip sectors, with gold prices supported by central bank purchases despite concerns about tightening by the U.S. Federal Reserve. Ok Ji-hoe, an analyst at Samsung Futures, forecasts a trading range of $4,100 to $4,750 through year-end, with a year-end close of around $4,550.