On July 29, Direxion Daily MSCI South Korea Bull 3x Shares fell 10.39% in pre-market trading, trading at $12.77/share, with turnover of $28.14 million.
On the news front, the Korean KOSPI index plunged as much as 12% intraday, triggering circuit breakers for the second consecutive trading day — a historic first. SK Hynix reported Q2 revenue of 79.32 trillion won, missing the consensus estimate of 84 trillion won, while operating profit of 60.54 trillion won also fell short of the expected 64.22 trillion won. Samsung Electronics dropped over 10%, with market capitalization falling below $900 billion. Retail investors shifted from prior dip-buying behavior to capitulation selling, with net sales of 1.9 trillion won in KOSPI constituents during the afternoon session.
The Korean government stated it sees no need to activate market stabilization funds, characterizing the selloff as a re-evaluation process driven by structural issues including excessive derivatives activity and overconcentration in semiconductor heavyweights. The 3x leverage structure of this ETF further amplified downside volatility amid the broad market collapse, with KOSPI now down approximately 30% for July.
The fund invests at least 80% of its net assets in financial instruments providing daily leveraged exposure to the MSCI South Korea Index, covering approximately 85% of the free float-adjusted market capitalization of South Korean issuers. It is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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