The KOSPI index showed a significant surge in early trading, leading to a broad rally in securities stocks. This increase is attributed to rising trading volumes and improved investor sentiment following the market rebound, resulting in a surge of buying interest in previously underperforming securities stocks.
According to the Korea Exchange, as of 10:16 a.m. on June 25, Kiwoom Securities was trading at 344,000 won, up 9.55% from the previous trading day. Other major securities firms also recorded gains, with Korea Financial Group rising 6.60%, Samsung Securities up 6.79%, Mirae Asset Securities increasing by 5.87%, and NH Investment & Securities climbing 5.04%.
On this day, the KOSPI opened at 8,703.42, up 232.40 points (2.74%) from the previous day, recovering above the 8,900 mark. The activation of a buying sidecar indicated a renewed preference for risk assets, with the securities sector emerging as a key beneficiary.
Earlier this year, securities stocks experienced significant price increases alongside the stock market rally, but they have faced relative underperformance over the past two months. This decline is attributed to a slowdown in trading volume and concerns that the strong performance seen in the first quarter may not continue.
An analyst at Kiwoom Securities, Ahn Young-jun, stated, "The recent correction reflects market concerns that trading volume and earnings will slow down after peaking in the first quarter. Despite the expansion of market capitalization, trading turnover has not increased since January of this year." He added, "The slowdown in turnover indicates that the influx of new investors is not as robust as before."
However, analysts maintain that the growth prospects for the securities industry remain solid. Ahn noted, "The expansion of retail investment and the increasing demand for corporate financing continue to create structural opportunities for securities firms. The growth focus is shifting from brokerage to wealth management (WM) and investment banking (IB), transforming the industry's landscape."
* This article has been translated by AI.
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