[Featured Stock] Natural Gas ETN's 'Soaring Rally'

[Asia Economy Reporter Junho Hwang] On the 13th, leveraged exchange-traded notes (ETNs) investing in natural gas futures surged significantly in the stock market. This is analyzed to be the result of rising natural gas prices due to increased demand from cold weather and reduced supply from Russia.

According to the Korea Exchange on the 13th, 'Samsung Leverage Natural Gas Futures ETN B' was trading at 15,610 KRW at 10:36 AM, up 23.01% from the previous closing price. TRUE Leverage Natural Gas Futures ETN(H) rose 22.54% to 8,020 KRW, and Shinhan Leverage Natural Gas Futures ETNDMS recorded 8,655 KRW, up 22.59%.

Leveraged products are designed to deliver twice the returns of the increase in natural gas prices. The base prices of these products rose as natural gas prices surged. On the 12th (local time), natural gas on the New York Mercantile Exchange jumped 13.30% to $4.81.

This is attributed to increased demand due to cold weather and news of Russia reducing its supply to Europe. On the same day, according to the US news channel CNN, Fatih Birol, Executive Director of the International Energy Agency (IEA), stated that amid the standoff between the West and Russia over the Ukraine crisis, Russia is reducing the amount of natural gas supplied to Europe. He added that Russian natural gas company Gazprom cut its European exports by an annualized 25% in the fourth quarter of last year despite rising natural gas prices and also reduced spot sales, which other companies have been increasing.

This content was produced with the assistance of AI translation services.