On June 5, Southern 2x Leveraged SK Hynix (07709) declined 15.96% in regular trading, trading at 112.65 HKD/share, with trading volume of 952 million HKD.
The sharp decline was driven by a broad selloff in Korean semiconductor stocks. SK Hynix plunged approximately 8.7-10% while Samsung Electronics dropped over 7%, dragging the Korean KOSPI index down more than 6% and triggering a circuit breaker that halted programmatic selling for five minutes. As a 2x leveraged product, the ETF amplified the underlying stock's losses.
The selloff was catalyzed by Broadcom's after-hours results, where the company's AI chip revenue forecast of $16 billion for Q3 fell short of analysts' average estimate of $17.2 billion, prompting investors to reassess AI infrastructure investment expectations. Broadcom shares fell over 12% overnight, while the Philadelphia Semiconductor Index dropped over 2%.
Market concerns were further compounded by elevated leveraged positioning in Korean equities, with analysts warning that the proliferation of leveraged ETFs could amplify any correction in the AI-concentrated rally that has driven KOSPI up over 100% year-to-date.
(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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