Kiwoom Securities said on the 29th that the domestic stock market is showing record-strong performance and advised that a strategy of increasing exposure to retail-focused securities stocks is valid. It maintained its investment opinion of "Overweight" and named Mirae Asset Securities as its top pick in the sector.
Ahn Young-jun, a Kiwoom Securities researcher, said, "Along with the stock market boom, all key indicators related to brokerage are at all-time highs," and noted, "With the stock market rally and the ongoing money move into the capital market, we can expect a favorable business environment going forward and a solid trend in securities company share prices based on that."
In fact, key indicators such as investor deposits and transaction value are rising sharply. As of Jan. 27, investor deposits increased 60% from a year earlier, surpassing 100 trillion won for the first time. Transaction value also jumped 52% month over month in January, exceeding 1,000 trillion won. The number of active trading accounts reached an all-time high of 99.82 million, up 2% from the end of the previous year.
Ahn emphasized that it is necessary to focus especially on securities companies with high retail market share (MS). He then presented Mirae Asset Securities as the biggest beneficiary of the industry's improvement.
He diagnosed that "not only will there be direct benefits from high retail MS, but expectations remain intact for ▲ an earnings turnaround ▲ approval for an integrated managed account (IMA) ▲ the launch of the Public Growth Fund ▲ expansion of the cryptocurrency market ▲ earnings growth at overseas subsidiaries ▲ active shareholder returns ▲ a revamp of the group's governance structure ▲ and listings of unlisted portfolio companies (such as SpaceX)."