Securities stocks have taken a divergent path from the previous year’s financial stock surge, with a significant 47% increase in the Securities Index target stock prices since January. The momentum of securities stocks, especially those holding substantial shares in the stock market, has overshadowed the performance of bank stocks this year. The launch of the Alternative Exchange (ATS) has injected vigor into the domestic stock market, propelling the remarkable rise of securities stocks, which have garnered attention even in the presidential race.
The Korea Exchange reported a notable 47.21% surge in the KRX stock index from January last year to the present day, coinciding with the government’s value-up program announcement. In contrast, the KRX Bank Index and KRX Insurance Index, representing the “Value Business Beneficiaries,” recorded more modest gains during the same period. The performance of large securities stocks, particularly those with a significant brokerage share, has been commendable. Market leaders like Mirae Asset Securities and Korea Financial Group have seen substantial stock price increases, setting new highs and attracting investor interest.
Driven by robust domestic and foreign stock market transactions, securities companies like Mirae Asset Securities, NH Investment & Securities, and Samsung Securities have seen their stock prices soar this year. The market has responded by raising target stock prices for these companies, reflecting positive performance outlooks. Expectations of treasury stock burning have fueled double-digit gains in some stocks over the past month, highlighting the significance of treasury stock management in listed securities companies.
Political promises to revitalize the stock market, including pledges to address the issue of treasury stocks, have further bolstered sentiment towards securities stocks. Presidential candidates advocating for mandatory retirement of treasury stocks have stirred optimism in the market, with investors anticipating positive outcomes for securities stocks regardless of the election results. The commitment to enhancing the K-capital market and fostering stock market growth has resonated positively with market participants.
Experts in the financial industry view the political discourse surrounding stock market reforms as a significant driver of securities stocks’ performance. The market’s anticipation of favorable outcomes for brokerage firms, which play a pivotal role in profit generation, underscores the industry’s optimism towards securities stocks. As brokerage performance continues to influence stock prices, the sector remains a key area of focus for investors seeking growth opportunities in the evolving market landscape.
