High-net-worth investors favored Doosan Enerbility, which surged 100%, over Samsung Electronics, SK Hynix
Since last May, when the domestic stock market began showing a bullish trend, Doosan Enerbility has emerged as the most purchased stock by individual high-net-worth investors. While Samsung Electronics and SK Hynix, leading semiconductor stocks, were the most traded among all investors, high-net-worth investors favored Doosan Enerbility.
According to an analysis of high-net-worth investor stock trading data provided by NH Investment & Securities on the 5th, the top five most traded stocks from May 1 to September 18 were Doosan Enerbility, followed by Samsung Electronics, SK Hynix, Alteogen, and NAVER, Naver. High-net-worth investors, defined as 2,670 customers with an average daily balance of 3 billion Korean won, were excluded from transactions presumed to be major shareholder activities.
After a slump following the emergency martial law incident in December of last year, the domestic stock market showed strength thanks to government policies to revitalize the market after the inauguration of President Lee Jae-myung’s administration. The KOSPI index, which had remained in the 2,500 range in early May, broke through the 3,000 mark in June after about a month. The index, which had continued to rise steadily, faced some stagnation in August due to controversy over strengthened major shareholder criteria included in the government’s tax reform plan. However, after an announcement on September 15 to maintain the current major shareholder criteria, it surged past 3,400 for the first time in history.
Over approximately four months, during which the KOSPI index rose nearly 1,000 points, high-net-worth investors using NH Investment & Securities purchased 453 billion Korean won worth of Doosan Enerbility, ranking first in terms of purchase amount. Doosan Enerbility, noted as a stock related to nuclear power plants and small modular reactors (SMRs), saw its stock price surge by over 100%. Its market capitalization increased from approximately 1.8 trillion Korean won to 4 trillion Korean won, and its ranking in the Korea Exchange’s market capitalization jumped from 23rd to 11th.
High-net-worth investors’ focus on Doosan Enerbility appears to stem from its reputation as a large, high-quality stock with a solid business and financial structure, coupled with high growth potential.
A source from the financial investment industry explained, “The stock price rose sharply as favorable factors, such as the expansion of the global nuclear power market and Korea-U.S. cooperation in the nuclear sector, coincided with a bullish market. Considering high-net-worth investors’ preference for stability, the buying momentum is attributed to Doosan Enerbility’s potential for future growth.”
Samsung Electronics and SK Hynix, which ranked second and third in high-net-worth investor purchases, also showed favorable performance with rises of 45% and 98%, respectively, during the same period. In contrast, Alteogen and NAVER underperformed relative to the index’s gains, rising only 39.9% and 18.95%, respectively.
In terms of overall domestic trading volume during the same period, East Asia Holdings ranked first, followed by KBI Dongyang Steel Pipe in second, Woori Technology in third, and Good People in fifth, with many KOSDAQ-listed stocks in the top ranks. These companies are believed to have experienced short-term surges in trading volume due to low prices and positive factors. East Asia Holdings recorded consecutive upper limits and first place in trading volume in July due to a stock merger, while KBI Dongyang Steel Pipe saw its stock price soar as an Alaska LNG-themed stock. However, even by trading volume, Samsung Electronics demonstrated its strength as a “national stock” by ranking fourth.
In terms of trading value, Samsung Electronics ranked first with approximately 105 trillion Korean won. This was followed by SK Hynix, Doosan Enerbility, Hanwha Ocean, and NAVER. However, Doosan Enerbility’s trading volume remained at half that of first-place Samsung Electronics, suggesting that profitability from the market rise may have been somewhat lower for high-net-worth investors.
A source from the financial investment industry explained, “Considering the stock price increases during this period, the return rate for high-net-worth investors who focused on Doosan Enerbility is likely higher compared to the overall investor base.”
Similar trends were observed between high-net-worth investors and all investors in trading patterns for exchange-traded funds (ETFs) and U.S. stocks/ETFs outside of individual domestic stocks. The most invested ETF by both high-net-worth investors and all investors was ‘KODEX Leverage,’ which tracks twice the KOSPI 200 index. In U.S. individual stocks, Tesla ranked first, and in U.S. ETFs, the ‘Direxion Tesla 2x ETF (TSLL),’ which tracks twice the changes in Tesla’s stock price, also topped the list.
