[Featured Stocks] Eased Concerns Over SVB Crisis... KB Financial and Other Bank Stocks Rise↑

Domestic bank stocks, which were hit hard by the bankruptcy of Silicon Valley Bank (SVB) in the United States, are showing an upward trend again.

At 9:12 a.m. on the 15th, KB Financial Group was trading at 49,200 won, up 1.65% from the previous trading day. Other banks such as Shinhan Financial Group (1.99%), Hana Financial Group (1.1%), Woori Financial Group (1.3%), and Industrial Bank of Korea (1.5%) also showed gains.

It is analyzed that domestic bank stocks rose in tandem as U.S. bank stocks, which had been pressured by the SVB incident, rebounded in just one day. In the U.S. stock market, First Republic, which had plunged nearly 80% at one point the previous day, surged 27% intraday after news that there were no large withdrawals and that it received capital injection from JP Morgan. Other major regional banks such as Charles Schwab (9%), KeyCorp (6.9%), and Western Alliance (14%) also showed upward trends.

Seosangyoung, a researcher at Mirae Asset Securities, said, “Bank CEOs’ confidence in the SVB incident and some global investment banks (IBs) stating that the risks were exaggerated led to the upward trend,” adding, “However, considering Moody’s negative outlook on the U.S. banking system, increased volatility is inevitable for the time being.”