Since 5th, when the domestic stock market began to show a bull run, the stock most bought by individual high-net-worth investors was Doosan Enerbility. For investors overall, the most traded stocks were semiconductor bellwethers such as Samsung Electronics and SK hynix, but the stock chosen by high-net-worth investors was Doosan Enerbility.
An analysis of high-net-worth investor stock transaction data provided by NH Investment & Securities on 5th showed that from May 1 to Sept. 18, the top five stocks by transactions were Samsung Electronics, SK hynix, Alteogen, and NAVER (Naver), along with Doosan Enerbility. High-net-worth investors are defined as 2,670 clients with an average daily balance of 3 billion won, excluding transactions presumed to be controlling shareholders' stakes.
After slumping following the martial law situation in December last year, the domestic stock market gained strength with stock market revitalization policies after the launch of the Lee Jae-myung administration. The Kospi index, which lingered in the 2,500s in early May, topped the 3,000s in June, about a month later. The index, which continued to rise thereafter, stalled somewhat as controversy flared in August over tightening the controlling shareholder threshold included in the government's tax reform plan, then erupted like a pillar of fire after an announcement on Sept. 15 to keep the controlling shareholder threshold as is, breaking 3,400 for the first time ever.
Over roughly four months, during which the Kospi index rose by nearly 1,000, high-net-worth investors using NH Investment & Securities bought 453 billion won of Doosan Enerbility, ranking No. 1 by purchase amount. Doosan Enerbility drew attention as a nuclear power and small modular reactor (SMR) play, with its share price rising more than 100%. Its market capitalization also grew from about 18 trillion won to 40 trillion won, and its Korea Exchange main board market cap ranking jumped from 23rd to 11th.
High-net-worth investors appear to have focused on Doosan Enerbility because many assess it as a large-cap blue chip with solid business and financial structures as well as high growth potential.
A financial investment industry official said, "With the expansion of the global nuclear power market and positives such as Korea-U.S. cooperation in the nuclear sector overlapping with a rising market phase, the share price climbed steeply," and added, "Given the investment traits of high-net-worth investors who prioritize stability, buying appears to have concentrated in Doosan Enerbility, which also offers future growth potential."
Samsung Electronics and SK hynix, which ranked second in purchases by high-net-worth investors, likewise showed solid momentum during this period with gains of 45% and 98%, respectively. By contrast, Alteogen and Naver rose only 39.9% and 18.95%, respectively, posting a disappointing stretch relative to the index's rise.
During the same period, by overall domestic trading volume, East Asia Holdings took first place, KBI Dongyang Steel Pipe second, Woori Technology third, and Good People fifth, with Kosdaq-centered stocks populating the upper ranks. These corporations appear to have seen a short-term surge in trading volume due to positives coupled with low prices. East Asia Holdings, following a reverse stock split in Jul., recorded consecutive upper-limit days and ranked No. 1 in trading volume, while KBI Dongyang Steel Pipe was grouped as an Alaska LNG theme stock and saw its share price soar. Still, by trading volume, Samsung Electronics ranked fourth, showcasing the power of the "people's stock."
By transaction amount, Samsung Electronics ranked No. 1 at about 105 trillion won. Next were SK hynix, Doosan Enerbility, Hanwha Ocean, and Naver, in that order. However, Doosan Enerbility's trading volume remained at half that of top-ranked Samsung Electronics, suggesting profitability from the market rally may have somewhat fallen short for high-net-worth investors.
A financial investment industry official explained, "Considering the share price gains during this period, the returns of high-net-worth investors who concentrated investments in Doosan Enerbility are likely to be higher than those of all investors."
Outside individual domestic stocks, similar patterns appeared between high-net-worth investors and all investors in trading of exchange-traded funds (ETFs) and U.S. stocks and ETFs. The ETF most invested in by both high-net-worth and overall investors was "KODEX Leverage," which tracks the Kospi 200 index at 2 times. Among individual U.S. stocks it was Tesla, and among U.S. ETFs, "Direxion Tesla 2x ETF (TSLL)," which tracks Tesla's share price at 2 times, topped both lists.