Securities Stocks Immune to Tariffs Hit Consecutive Record Highs on Earnings and Policy Expectations

KRX Securities Index Rises 21% This Year
Mirae Asset, NH, Korea Financial Investment Holdings, Samsung Securities Reach 52-Week Highs
Strong First-Quarter Earnings and Policy Expectations Drive Momentum

Securities stocks are showing a remarkable upward trend. They are continuing to perform well, as they are considered immune to tariff risks, and expectations for improved earnings and favorable policy developments are adding to their momentum.

According to the Korea Exchange on May 2, the KRX Securities Index closed at 893.13 on April 30, up 4.66%. This marked a nine-day consecutive rise. Since the beginning of this year, the KRX Securities Index has climbed 21.17%, significantly outperforming the KOSPI, which rose 6.55% over the same period.

On this day, 10 out of the 11 stocks comprising the KRX Securities Index posted gains.

Several stocks also hit new 52-week highs. Mirae Asset Securities, NH Investment & Securities, Korea Financial Investment Holdings, Samsung Securities, Daishin Securities, Shin Young Securities, DB Financial Investment, and Yuanta Securities all reached their highest prices in a year.

The strong performance of securities stocks is attributed to their freedom from tariff impacts and expectations for improved earnings. Although market volatility increased this month due to tariff risks, securities stocks, which are considered immune to such risks, maintained a stable trajectory.

On this day, Kiwoom Securities announced that its first-quarter net profit attributable to controlling shareholders rose 61.05% quarter-on-quarter to 235.3 billion won. This figure exceeded market expectations. Park Hyejin, a researcher at Daishin Securities, stated, "Kiwoom Securities' first-quarter net profit surpassed the consensus (average analyst forecast) by 7.6%, delivering strong results," adding, "Domestic trading volume rebounded, and although the total trading volume of overseas stocks declined, Kiwoom Securities saw a significant increase in contract amounts, resulting in solid brokerage commission income."

NH Investment & Securities, which announced its results earlier, also posted earnings that exceeded market expectations. Its first-quarter net profit attributable to controlling shareholders jumped 89.2% quarter-on-quarter to 208.2 billion won. Baek Doosan, a researcher at Korea Investment & Securities, commented, "First-quarter net profit attributable to controlling shareholders surpassed the consensus by 7%," analyzing that, "This was due to solid performance in investment banking (IB) and proprietary trading compared to estimates."

The recovery in trading volume, which had been sluggish last year, is also supporting the strong performance of securities stocks, driven by the launch of the alternative trading system (ATS) and other factors. The average daily trading volume in the domestic stock market, which was around 15 trillion won at the end of last year, rebounded to 16.5579 trillion won in January, 21.1803 trillion won in February, and 17.1757 trillion won in March during the first quarter of this year. Ahn Youngjun, a researcher at Kiwoom Securities, explained, "Due to the sluggish domestic stock market in the second half of last year, trading volumes were low, but since the beginning of this year, trading volumes have improved in line with the market rebound," adding, "In particular, since the launch of the alternative trading system in March, it has recently achieved a market share of over 20%, and with the inflow of individual investors into the stock market, brokerage performance is expected to remain strong going forward."

The easing of regulations by the authorities is also raising expectations for securities stocks. On April 9, the Financial Services Commission announced measures to enhance the competitiveness of investment banking in the securities industry. It stated that it would designate comprehensive investment account (IMA) operators, currently permitted for comprehensive financial investment business entities (with equity capital of 8 trillion won or more), as early as this year, and would also expand corporate credit offerings by these entities.

Researcher Park Hyejin said, "Recently, the securities industry is enjoying an exceptionally favorable environment, with strong earnings and regulatory easing."