Seoul shares ended higher on Monday as the benchmark Korea Composite Stock Price Index (KOSPI) rose 0.89 percent, closing at 2,500.65. The tech-heavy KOSDAQ, however, fell 2.16 percent, closing at 819.14. The local currency, the Korean won, strengthened against the U.S. dollar, closing at 1,335.7 won.
The KOSPI's rise on Monday follows four consecutive days of decline. The market's performance was influenced by major U.S. economic data releases, including the December consumer price index and the producer price index. Investors are also awaiting the outcome of the Bank of Korea's rate-setting meeting on Thursday. The KOSPI was dragged down by big-cap tech and auto stocks, while IT shares gained ground. Samsung Electronics saw a 0.55 percent increase in its share price, while LG Energy Solution saw a 0.46 percent decrease. Pharmaceutical firms mostly lost ground, while foodstuff makers closed higher. LIG Nex1, a defense company, saw a significant jump of 29.92 percent.
The KOSPI's performance is closely tied to foreign investors, who have been selling Seoul shares for five consecutive trading days. On Thursday, foreign investors sold 130.9 billion won worth of shares, contributing to the decline in the KOSPI. The selling spree is attributed to dimmed expectations of the U.S. Federal Reserve easing its monetary policy stance and heightened geopolitical tensions. The Korean won weakened against the U.S. dollar, closing at 1,339 won. Experts project that the U.S. Federal Reserve will cut the base interest rate in the second quarter, which may further weaken the won.
The KOSPI's rise on Monday provides some relief for investors amidst ongoing geopolitical risks. The market will continue to closely monitor major economic data releases and the Bank of Korea's rate-setting meeting for further direction.
In Hong Kong, XL2CSOPUSOILGAS (07204.HK) was the top gainer among ETFs, surging 3.6 percent and closing at HK$6.225. Other top gainers include SAMSUNG SEMICON (03132.HK) which closed at HK$20.32, up 2.7 percent, FL2CAMNDQ100 (07261.HK) which closed at HK$26.36, up 2.4 percent, FL2CSOPNASDAQ (07266.HK) which closed at HK$20.38, up 2.4 percent, and SAMSUNG FANG (02814.HK) which closed at HK$28.4, up 2.2 percent.
Envestnet Portfolio Solutions Inc. recently made a new investment in iShares MSCI South Korea ETF (NYSEARCA:EWY), acquiring 17,669 shares valued at approximately $1.04 million. This move is part of a larger trend, with other institutional investors such as Focused Wealth Management Inc, Headlands Technologies LLC, Patriot Investment Management Group Inc., Advisors Preferred LLC, and Global Retirement Partners LLC also making changes to their positions in the company. The iShares MSCI South Korea ETF has been performing well, with a 1-year high of $67.95 and a market capitalization of $3.80 billion. The ETF seeks to track the performance of the MSCI Korea 25/50 Index, which consists of stocks traded primarily on the Stock Market Division of the Korean Exchange.
Envestnet Portfolio Solutions Inc. has also purchased 19,599 shares of iShares Global Tech ETF (NYSEARCA:IXN) valued at approximately $1,134,000. Other large investors, including Keystone Financial Group, Spire Wealth Management, Northwest Capital Management Inc, MML Investors Services LLC, and NBC Securities Inc., have also bought and sold shares of the company. The iShares Global Tech ETF has a 12-month low of $48.48 and a 12-month high of $73.93. Its fifty-day simple moving average is $69.69 and its 200-day simple moving average is $64.10.
Envestnet Portfolio Solutions Inc. has further expanded its investment in iShares ETFs by acquiring 51,766 shares of iShares MSCI Australia ETF (NYSEARCA:EWA) valued at approximately $1,113,000. This investment in the iShares MSCI Australia ETF is part of a larger trend, with other institutional investors and hedge funds also modifying their holdings of the company. The iShares MSCI Australia ETF has a 52-week low of $20.46 and a 52-week high of $24.67. The fund seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Australian market, as represented by the MSCI Australia Index.
According to an article by James Mickleboro on The Motley Fool Australia, there are five ASX ETFs that investors can consider investing $10,000 into next week. The ETFs mentioned are the BetaShares Global Cybersecurity ETF, Betashares Global Uranium ETF, BetaShares NASDAQ 100 ETF, Vanguard MSCI Index International Shares ETF, and Vanguard U.S. Total Market Shares Index ETF. The BetaShares Global Cybersecurity ETF provides access to the global cybersecurity sector, which is expected to grow due to increasing demand for cybersecurity. The Betashares Global Uranium ETF offers exposure to leading companies in the global uranium industry. The BetaShares NASDAQ 100 ETF provides access to 100 of the largest non-financial shares on the NASDAQ index. The Vanguard MSCI Index International Shares ETF provides access to approximately 1,500 of the world's largest listed companies (excluding Australia). The Vanguard U.S. Total Market Shares Index ETF allows investors to buy a slice of ~4,000 US listed shares. The article also includes the author's positions in the BetaShares Nasdaq 100 ETF and disclaimers regarding general investment advice.
Author Sebastian Bowen plans to invest in the BetaShares Global Cybersecurity ETF (ASX: HACK) as his next ASX ETF investment. The ETF provides exposure to a portfolio of companies from around the world that are major players in the cybersecurity industry. The majority of the ETF's holdings are US-based stocks. The author believes that cybersecurity is becoming increasingly important in modern life, and individuals, businesses, and governments are willing to pay more for cybersecurity services. The ETF has shown strong past performance, with average annual returns of 18.69% over the past five years. The author expects the ETF to continue performing well in the future.
The SPDR S&P World ex Australian Fund ETF (ASX: WXOZ) is another Australian and ASX-listed ETF that provides exposure to medium and large companies listed on stock markets outside of Australia. The ETF has a total funds under management (FUM) figure of over $100 million, meeting the minimum criteria for FUM. The management fee for the WXOZ ETF is 0.18%, lower than the average management fee of all ETFs covered by Best ETFs Australia. Investors are advised to read the ETF's Product Disclosure Statement (PDS) before investing. Best ETFs is Australia's leading source of ETF news and analysis.
