The Direxion Daily MSCI South Korea Bull 3x Shares (KORU) experienced a sharp intraday plummet of 10.72% on Thursday. This leveraged exchange-traded fund, which aims to deliver three times the daily performance of the MSCI South Korea Index, moved significantly lower during the trading session.
The decline follows data revealing 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. The substantial foreign selling pressure creates significant headwinds for South Korean stocks, directly impacting bull-oriented leveraged products like KORU that amplify market movements.
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