Yuanta Securities Korea said on the 27th that Kiwoom Securities will benefit if retail investors' turnover rises in the KOSDAQ market. It maintained a Buy rating and raised the target price by 12.5% from the previous level to 4.5 million won. Kiwoom Securities' previous day's closing price was 358,500 won.
The Democratic Party of Korea's KOSPI 5000 special committee put forward "KOSDAQ 3000," and on the 26th the KOSDAQ market rose 7.09%. By investor type, foreigners and institutions were net buyers of KOSDAQ and net sellers of KOSPI, while individuals were net sellers of KOSDAQ.
Woo Do-hyeong of Yuanta Securities Korea said, "However, individuals mainly buy KOSDAQ leverage products listed on the KOSPI market, which is expected to act to expand market volatility."
In particular, Woo projected that if foreigners additionally buy KOSDAQ, price volatility in KOSDAQ will expand. Woo also explained that individual investors' purchases of KOSDAQ leverage products are expected to show high turnover, which will likely increase market transaction value.
Woo said, "Accordingly, the government's commitment to revitalize the KOSDAQ market, the inflow of foreign funds, and higher turnover among individuals are expected to serve as momentum (upside potential) for securities firms' earnings growth."
In particular, Kiwoom Securities' KOSDAQ market share (MS) was 24.8% in the fourth quarter, the highest among securities firms covered by Yuanta Securities Korea.
Woo analyzed, "The KOSDAQ market has a high proportion of individual investors, and if retail investors' turnover rises going forward, a positive effect from higher brokerage fees is expected."