In early trading on the 8th, securities stocks were broadly lower. The KOSPI index fell by nearly 1,000 points at the open and slumped to the 7,400 level, which appeared to weigh on the sector.
As of 9:37 a.m., Mirae Asset Securities was trading at 51,800 won, down 4,600 won (8.16%) from the previous session, on the Korea Exchange.
At the same time, NH Investment & Securities (5.67%), Samsung Securities (7.37%), Kiwoom Securities (6.73%), Daishin Securities (6%), and SK Securities (5.46%) were also weak.
This appears to be due to the KOSPI index opening down 8% in early trade. The KOSPI started sharply lower on concerns about an AI investment slowdown sparked by Broadcom and renewed U.S. tightening worries. However, dip-buying during the session helped pare losses to the 7,700 level.
Still, brokerages judged that securities stocks retain upside potential. They expect trading turnover to remain solid as market volatility increases.
Park Hye-jin, an analyst at Daishin Securities, said, "We believe the recent weakness in securities share prices was largely due to the market having priced in a full year's earnings in the first quarter," but added, "With second-quarter results ahead and the consolidation period having been long, some stocks are likely to stand out for their valuation appeal."