Bank stocks were rising in early trading on the 8th on expectations of strong earnings.
As of 9:55 a.m. that day, JB Financial Group was trading at 28,450 won, up 450 won (1.61%) from the previous session.
At the same time, KB Financial and Shinhan Financial Group were also up 1.15% and 0.92%, respectively. Woori Financial Group (0.63%), Industrial Bank of Korea (IBK) (0.47%), Jeju Bank (0.21%), and Hana Financial Group (0.16%) were also showing gains.
With semiconductor stocks weakening recently and rotational funds flowing in, the market appears to be focusing on bank stocks, where earnings improvement and expanded shareholder returns are intersecting.
Jo A-hae of Meritz Securities said, "Banks' net interest margin (NIM) is expected to continue improving, rising quarter over quarter on the back of higher market rates," and added, "Banks with relatively high sensitivity to interest rates will show larger improvements."
She added, "Based on banks' solid earnings capacity and the rationalization of capital regulations, expectations for active shareholder returns driven by improvements in the CET-1 ratio remain valid."