South Korea’s exchange traded fund (ETF) iShares MSCI South Korea Index (EWY) has been a superstar this year. Currently, it’s up 45.8% year-to-date.
Although EWY is still doing well, its largest holding Samsung reported that its quarterly profits were down compared to last year. Samsung currently makes up 13.1% of EWY as opposed to the 40% that it used to. Samsung, which is the world’s top memory chip maker, said its profits were flat from last year as sluggish computer memory chip prices offset high sales of flat screens, Reuters reports. This caused its shares to rise a minor 1.6% compared to the broader market’s 11.6% rise in the third quarter. This news, in combination with South Korea’s other concerns, has investors watching EWY.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.