NEXT FUNDS Nikkei225 2x surges into uncharted territory as margin buying balance plunges, margin ratio falls below 1x

NEXT FUNDS Nikkei 225 Leveraged Index Exchange Traded Fund <1570> shares surged sharply, at one point rising around 4,500 yen to the 77,000 yen level. The ETF tracks the Nikkei Stock Average with twice the daily performance, drawing active short-term trading from retail investors amid heightened market volatility.

Overnight in the U.S., the three major stock indices, including the Dow Jones Industrial Average, hit record highs, fueled by robust buying in semiconductor shares. The Philadelphia Semiconductor Index (SOX) surged nearly 6%, gapping up into record territory. Capitalising on this momentum, heavyweight chip-related and electric wire stocks jumped in Tokyo, boosting the benchmark index. While the ETF moved in tandem, its margin buying balance has plunged since mid-May. The long balance, which stood at 1.18 million units in mid-May, nearly halved to 629,421 units in the latest data, reflecting profit-taking by retail investors during the Nikkei's rally. Meanwhile, the margin selling balance has steadily risen to 702,596 units, overtaking the buying balance. This brought the margin ratio to 0.90x, marking the first net short position since the start of the year.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.