On the previous day, the Kiwoom Leverage Semiconductor TOP10 ETN experienced a premium exceeding 100% compared to its underlying value. However, during the price normalization process, it plummeted nearly 50% in early trading.
According to the Korea Exchange, as of 10:06 a.m. on June 24, the Kiwoom Leverage Semiconductor TOP10 ETN was trading at 194,090 won, down 185,910 won (48.92%) from the previous trading day.
The ETN had closed the previous day at 380,000 won, having surged 135,925 won (55.69%). However, the indicative intraday value (IIV) was only 185,060.37 won, indicating that the market price was more than double the actual value. This resulted in a premium of 105.33%, significantly exceeding the 1% disclosure standard for domestic underlying asset ETNs.
Kiwoom Securities explained in a public notice that the premium arose due to extremely low liquidity during the closing auction process, where orders were executed at prices that did not reflect the market. They noted that in a low-volume trading environment, some orders were filled, leading to an abnormally high closing price.
The premium serves as an investment risk indicator, reflecting the difference between the market price of the ETN and its indicative value. A high premium suggests that the market price is significantly detached from the actual value of the underlying assets, which could lead to investment losses as prices converge to normal levels.
Kiwoom Securities cautioned, "Investing at prices significantly deviated from the indicative value may result in not achieving the expected investment performance, even if the underlying index rises. Investors should be aware that losses may occur as market prices converge to the indicative value."
* This article has been translated by AI.
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