The Direxion Daily MSCI South Korea Bull 3x Shares (KORU) experienced a significant pre-market plunge of 6.08% on Thursday. This leveraged exchange-traded fund, which aims to deliver three times the daily performance of the MSCI South Korea Index, moved sharply lower ahead of the regular trading session.
The decline comes as data revealed foreign investors recorded the largest-ever monthly net outflow from South Korean equities in February, selling $13.5 billion worth of stocks. This record outflow was driven by growing concerns over potential risks associated with the artificial intelligence bubble and profit-taking activities following recent market gains.
An official from the Bank of Korea's International Financial Trends team noted that equity funds recorded the largest monthly net outflow as investors grew more cautious regarding AI-related investments and engaged in profit-taking. The substantial foreign selling pressure creates headwinds for South Korean stocks, directly impacting bull-oriented leveraged products like KORU.
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