Shinsegae jumped more than 11% in early trading on the 9th. Investor interest appeared to rise as brokerages raised Shinsegae's target price across the board, saying the domestic stock market boom could bring a wealth effect.
As of 9:47 a.m. that day on the Korea Exchange, Shinsegae was trading at 635,000 won, up 63,000 won (11.01%) from the previous session's close.
Shinsegae shares were strong early in the session, which analysts said was due to a wave of target price hikes on expectations for solid earnings.
Korea Investment & Securities Co. said in a report that day it expects sales at Shinsegae Department Store to increase this year on the back of the wealth effect.
Kim Myeong-ju, an analyst at Korea Investment & Securities Co., said, "Shinsegae has the highest share of luxury goods among the three department store companies," adding, "Given that factors currently driving domestic sales in the department store industry are the wealth effect and a FOMO phenomenon following price hikes for luxury jewelry, Shinsegae Department Store's overwhelming sales trajectory among the three this year is clear."
Korea Investment & Securities Co. maintained its "buy" recommendation and raised the target price 29% to 900,000 won from 700,000 won.
Earlier, on the 8th, IBK Securities raised its target price for Shinsegae to 780,000 won from 530,000 won. The same day, Meritz Securities also initiated with a target price of 770,000 won for Shinsegae.