◆Aju Economy Top Stories
▷Semiconductor leveraged ETFs surge; up as much as 14-fold in a year
-Korea’s exchange-traded fund market has been led over the past year by semiconductor leveraged products, with some posting returns of more than 1,000%.
-Major products, including TIGER 200IT Leverage, track twice the daily move of their underlying indexes and have jumped on expectations for improving semiconductor conditions.
-The gains have been supported by rising semiconductor-related indexes as expectations grew for stronger earnings, driven by expanding global AI investment and higher data-center demand.
-Leveraged ETFs are designed to deliver 2x daily returns. In rising markets, compounding can amplify gains, but in volatile trading, losses can also widen quickly.
-Securities firms have kept a positive view on the semiconductor cycle but said investors should be cautious, citing signs the cycle may be entering a later phase and volatility could increase.
◆Key Reports
▷Korea IPO Market - April IPO review and outlook from May [Eugene Investment & Securities]
-In April 2026, the IPO market was weak as SPAC listings increased while only two operating companies went public, reflecting a seasonal slowdown.
-There were seven listings, slightly above average, but most were on KOSDAQ or SPACs, with none on the main stock market.
-Offering size and market capitalization exceeded historical averages, but institutional bookbuilding demand (692:1) and retail subscription competition (1108:1) were below recent averages, signaling cooler sentiment.
-Listed companies still posted strong gains: average returns from offering price to opening price were 79.9%, and 174.8% on an annual basis.
-The May IPO market is expected to see a sharp drop in both the number of listings and offering size, with a gradual recovery forecast from June.
◆Key filings after the close (30th)
▷Samsung Electronics donated 3.8 billion won to the Ho-Am Foundation last year, up 380 million won from a year earlier
▷Hyundai AutoEver posts 21.2 billion won in Q1 operating profit, down 20.7% from a year earlier
▷Jigu Holdings to raise 1.6 billion won via third-party allotment of new shares
▷Golfzon posts 14.1 billion won in Q1 operating profit, down 47.4% from a year earlier
▷Hyundai AutoEver posts 21.2 billion won in Q1 operating profit, down 20.7% from a year earlier
▷Court holds hearing for JR REITs CEO over rehabilitation filing; assets and claims frozen
◆Fund flows (as of the 29th, excluding ETFs)
▷Domestic equity funds: +25.9 billion won
▷Overseas equity funds: +50.4 billion won
◆Key events today (4th)
▷Eurozone: Sentix investor confidence index (May)
▷United States: Durable goods orders (March)
▷Meeting: Eurozone finance ministers’ meeting
▷Markets closed: China, the United Kingdom, Japan
* This article has been translated by AI.
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