Will Securities Firms Continue to Surge with Increased Turnover and Supportive Policies?
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Synopsis
As securities firms experience a significant rise, experts predict even greater gains fueled by increased market turnover and supportive policies. Analysts highlight favorable conditions for brokerage earnings, making this sector a prime focus for investors.
Key Takeaways
- Securities firms have doubled their shares this year.
- Increased turnover is a significant factor in their growth.
- The KOSPI index has risen over 43% in 2023.
- Market-friendly policies are enhancing the sector's outlook.
- Analysts predict further increases in daily turnover.
Seoul, Oct 6 (NationPress) Shares of securities firms, which have already seen a remarkable doubling this year, are anticipated to progress even further fueled by enhanced turnover and market-friendly initiatives, according to industry analysts on Monday.
As reported by the Korea Exchange (KRX), the index reflecting the stock performance of listed securities firms has nearly doubled in value this year, placing it among the top-performing sectors, as shared by Yonhap news agency.
The benchmark KOSPI index has surged over 43 percent in 2023, attracting a wave of retail investors eager to capitalize on the market opportunities.
In September, the securities firm index climbed by an impressive 8.2 percent, significantly outperforming the KOSPI's modest 0.5 percent increase.
Amidst this bullish market environment, the daily stock turnover—including trades on the country’s primary alternative stock trading platform, NXT—soared to 27 trillion won ($19.3 billion), up from the previous month’s 22.7 trillion won.
During the third quarter, daily turnover witnessed a 9.7 percent quarter-on-quarter increase to 26 trillion won.
“Foreign investments, alongside heightened turnover, will significantly support the local stock market,” stated Koh Yeon-su, an analyst at Hana Securities.
“Securities firms stand to gain immensely from this upward trend,” Yeon-su added.
Yoon Yu-dong, an analyst at NH Investment & Securities, forecasted that with an easing monetary cycle, daily turnover could hit 30 trillion won this year, potentially escalating to 37 trillion won by 2026 and 43 trillion won by 2027.
Analysts believe that a series of market-friendly reforms, including treasury share adjustments and favorable tax policies, will further benefit securities firms.
“All conditions are favorable for improving brokerage firms’ earnings,” remarked Yoon from NH Investment & Securities.
“This sector is poised to shine brightly in 2023,” Yoon concluded.
Point of View
It's clear that the current landscape for securities firms showcases a promising future, driven by favorable market dynamics and strategic reforms. The trends indicate a solid opportunity for investors, reinforcing the importance of staying informed and engaged in this evolving market.
NationPress
06/10/2025
Frequently Asked Questions
What factors are driving the increase in securities firms' shares?
The surge in securities firms' shares is primarily driven by increased market turnover and supportive policies, alongside foreign investments.
How much has the KOSPI index increased this year?
The KOSPI index has rallied by over 43 percent so far this year.
What is the expected daily turnover for securities firms?
Daily turnover is projected to reach 30 trillion won this year, with further increases anticipated in the coming years.
What market-friendly measures are benefiting securities firms?
Measures such as treasury share reform and favorable tax policies are providing a significant boost to securities firms.
Why are analysts optimistic about the securities sector?
Analysts are optimistic due to the favorable market conditions and expected improvements in brokerage earnings.
