Professional investors have been concentrating money in large semiconductor stocks that have been leading recent gains in South Korea’s market. Their buying has also been evident in contracts for difference, or CFD, positions, with Samsung Electronics and SK Hynix showing the clearest rise in balances.
As of the end of April, both the number of shares and the value of CFD balances in Samsung Electronics and SK Hynix rose sharply among the top CFD holdings, according to the financial investment industry on May 7. CFDs are leveraged products that settle only price differences without owning the underlying shares, and they are available only to professional investors.
Samsung Electronics posted the biggest jump. Its CFD balance increased by 296,277 shares from the end of March, up 38%. The balance value rose by 72.123 billion won, a 78% surge. SK Hynix also climbed: its CFD balance increased by 21,689 shares, up 9.9%, while the balance value expanded by 42.456 billion won, up 34%. The inflows were attributed to strong share prices amid expectations for AI semiconductors and high-bandwidth memory, or HBM.
Outside semiconductors, Seojin System stood out. Over the past month, its CFD balance saw a net inflow of 1,378,511 shares, and the balance value increased by 69.512 billion won. By balance value, it rose from around the top 20 to about seventh. The move was linked to growth expectations tied to data centers and power infrastructure.
Some growth stocks, however, showed profit-taking. APR’s CFD balance fell by 151,248 shares, while its balance value dropped by 28.839 billion won, declines of 37.68% and 38.95%, respectively.
Market watchers said recent CFD flows reflect a leadership rally centered on AI and semiconductors. With professional investors rapidly increasing exposure to Samsung Electronics and SK Hynix, they said the concentration of demand in chip stocks could persist for some time.
Brokerages have also argued that a re-rating of the memory cycle is still in its early stages, saying there is room for further gains even after Samsung Electronics and SK Hynix broke past record highs.
SK Securities on May 7 raised its target price for Samsung Electronics to 500,000 won from 400,000 won a month earlier, about 87% above the current price. It also lifted its target for SK Hynix to 3,000,000 won from 2,000,000 won, implying about 87% upside from the current share price.
* This article has been translated by AI.
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