If you expect a V-shaped or U-shaped market rebound, 'Direct Investment in Blue-Chip Stocks'
If you anticipate an L-shaped or Nike-shaped market, 'Blue-Chip Shooting-Up ELS Series'
For diversified investment in representative stocks of Korea + G2 countries, 'Wrap Account Service'
[Asia Economy Reporter Song Hwajeong] Following the recent increase in volatility in the domestic stock market and the exit of foreign investors, domestic individual investors have been filling the gap. On the 8th, Samsung Securities introduced three customized investment solutions for individual investors.
First, for investors expecting a V-shaped rebound with a rapid market recovery or a U-shaped rebound after a period of sideways movement, Samsung Securities suggested a strategy of directly purchasing blue-chip stocks such as Samsung Electronics or exchange-traded funds (ETFs) that track the overall market. In the case of Samsung Electronics shares, this expectation led to a closing price low of 42,500 KRW on the 23rd of last month, the lowest this year, followed by a rise to 49,600 KRW on the previous day, a 16.7% increase from the low. However, it is important to note that direct stock investment can result in losses as well as gains depending on market movements.
Next, for investors anticipating an L-shaped trend where stock prices remain flat due to ongoing economic uncertainty, or a slow recovery over a long period, Samsung Securities recommended a series of shooting-up equity-linked securities (ELS) based on blue-chip Samsung Electronics. Among these, the ELS 24274, which is open for subscription until the 14th, is recommended for those predicting an L-shaped market. This product offers an annual pre-tax return of 18.72% if the stock price rises by at least 2% from the initial reference price at early redemption points at 3, 6, or 9 months after subscription. If early redemption does not occur by maturity at one year, investors will gain or lose according to the price movement at maturity. However, the product is designed to pay at least 80% of the principal even in the event of a decline, reducing concerns about losses.
Additionally, for investors expecting a Nike-shaped recovery, ELS 24275 is recommended. If the final reference price of Samsung Electronics, the underlying asset, is higher than the initial reference price one year after subscription, investors receive 50% of the gain (pre-tax) as profit. Conversely, if the price falls, losses occur corresponding to the decline, but this product also guarantees at least 80% of the principal.
Kim Seongbong, Head of Product Support at Samsung Securities, stated, "Many investors expect that if negative indicators related to the real economy begin to emerge, market volatility may increase further or the recovery period may lengthen. For these investors, shooting-up ELS, which limits losses to a certain level while pursuing profits, is considered suitable, and we plan to continuously launch such products in the future."
Finally, for mid- to long-term investors seeking companies that will become winners in the global industrial restructuring after the current uncertain market crisis, Samsung Securities proposed a wrap account service that selects one representative company each from Korea and the G2 countries (the United States and China) for investment.
A wrap account is a product where a securities firm manages stocks, bonds, funds, etc., on behalf of clients. Unlike funds that diversify investments across dozens of stocks, wrap accounts can focus investments on a small number of stocks, maximizing the advantage of concentrated investment in promising stocks.
Currently, Heun Choi, Head of the Wrap Management Team at Samsung Securities, said, "Many experts expect that after this crisis passes, the market dominance of global leading companies with both financial stability and growth potential will be further strengthened. For investors interested in these market trends, we plan to launch wrap accounts that carefully select attractive stocks from Korea and the G2 countries to include in the portfolio."
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