The KOSPI, which had climbed to the 5,200 level, plunged below 5,000 in a day. Concerns about tightening sparked by Kevin Warsh, tapped as the next Fed chair, combined with fatigue from a short-term surge.
Investors who have watched the market swing sharply several times a day for nearly a month are feeling fatigue. Experts advise that if it is hard to call the market's direction, look to securities stocks, where revenue builds the more active transactions are.
Securities stocks are a representative platform business whose appeal rises as more investors participate in the market. Whether the index goes up or down, as long as transactions are active, brokerage fee revenue steadily builds. Kang Seung-geon, an analyst at KB Securities, said, "In the securities sector, brokerage fees and interest revenue account for 45% to 65% of net operating revenue."
In fact, liquidity gauges in the domestic market are at record highs. As of Jan. 30, investor deposits totaled 106.00324 trillion won. Deposits that were in the 50 trillion won range early last year nearly doubled in a year. Transaction value is also record-breaking. In January, domestic market transaction value topped 1,000 trillion won for the first time, and the daily average transaction value is approaching 62 trillion won.
Kim Jae-woo, an analyst at Samsung Securities, said, "Key indicators such as deposits and transaction value are at unprecedented levels," and noted, "Accordingly, high-quality securities firms are entering new territory, with price-to-book ratios (PBR) approaching 2 times."
Recent gains in securities stocks also stand out. The KRX Securities Index rose 42.97% over the past month (Jan. 2–30), posting a strong increase second only to the KRX Semiconductor Index. Kiwoom Securities, a retail powerhouse, climbed more than 53%, approaching its target price (400,000–450,000 won), and Mirae Asset Securities rose nearly 80%, already exceeding projections.
Even so, experts say it is worth paying attention to securities stocks with room to run. Kang said, "Even for securities stocks that have already risen a lot, considering average daily transaction value and a broader base of market participants, expectations for brokerage-centered earnings improvement remain valid."
Kim said, "Companies popular in the market such as Mirae Asset Securities and Kiwoom Securities have PBRs near 2 times, but other securities firms are still below 1.5 times," adding, "As with banks and insurers where leaders rose first and others followed, a catch-up rally should also appear within securities stocks."
Samsung Securities (+20.1%), NH Investment & Securities (+28.1%), and Korea Investment & Securities Co. (+33.2%) have yet to reach brokerage target prices, prompting assessments that investors can expect further gains. The target prices for the three securities firms are Samsung Securities 90,000–110,000 won, NH Investment & Securities 28,000–30,000 won, and Korea Investment Holdings 200,000–266,000 won.