In the afternoon on the 29th, securities shares are rising across the board. As the stock market shows a boom and stock transaction increases, expectations that securities firms' earnings will improve are pushing up share prices.
As of 3:03 p.m. that day, Mirae Asset Securities was trading at 41,050 won on the Korea Exchange, up 6,250 won (17.96%) from the previous trading day. At the same time, SK Securities (29.94%), Sangsangin Investment & Securities (19.48%), Eugene Investment & Securities (12.31%), and Kiwoom Securities (8.35%) were also all strong.
Recently, KOSPI and KOSDAQ have both renewed their record highs, and the average daily transaction value in Korea's stock market has surged. Accordingly, expectations for earnings improvements at securities firms are growing. The securities industry is traditionally considered the sector that most directly benefits from increases in transaction value.
An Young-jun of Kiwoom Securities said, "Securities firms' earnings are highly sensitive to stock market transaction value, and the sector's share prices generally move in line with the market," adding, "In past periods when Korea's stock market rose sharply, such as in 2009, 2017, and 2020, the securities sector's share prices moved in tandem."
According to the Korea Financial Investment Association, the market transaction value in Korea this month surpassed 1,000 trillion won for the first time ever on the 27th. That is about a 52% increase from the previous month. Key investment indicators, including the number of new accounts, also have been rising quickly.
Investor deposits, called "stock market idle funds," are also swelling rapidly. Investor deposits surpassed 100 trillion won for the first time ever on Jan. 27. That is about a 15% increase from roughly 87 trillion won at the end of last year in less than a month.
Ko Yeon-su of Hana Securities said, "Even though KOSPI climbed sharply last year, individual investors' share of transaction value was only 64.2%, so it is still early to see this as a full-fledged phase of individual money inflows," while adding, "Recently, individuals' share of domestic stock trading has rebounded, so expectations for further inflows remain valid."