[Market Movers] Shin Young up 11%, Mirae Asset up 9%... Securities Stocks Rally on KOSPI 5000 Hopes After Presidential Election

Strong Expectations for Market Normalization
Following President Lee Jaemyung's Election

The stock prices of securities firms such as Mirae Asset Securities, Shin Young Securities, and Bookook Securities are showing strong gains. This appears to be due to heightened investor sentiment following the election of President Lee Jaemyung and growing expectations for the arrival of the 'KOSPI 5000' era.

As of 9:47 a.m. on June 4, Bookook Securities' share price had risen by the upper limit of 29.94%, reaching 44,700 won. At the same time, Mirae Asset Securities was trading at 16,990 won, up 8.77% from the previous trading day. Shin Young Securities (up 10.4%) and SK Securities (up 9.6%) were also on the rise.

It is believed that expectations for the fulfillment of campaign pledges have influenced the market, as President Lee had proposed measures to resolve the Korea Discount (the undervaluation of the KOSPI) and strengthen shareholder returns to attract foreign investors even before his election. President Lee has also put forward a policy requiring the mandatory cancellation of treasury shares as part of his capital market pledges.

Additionally, with the goal of ushering in the 'KOSPI 5000' era, there is optimism that the stock market itself will experience a positive trend, which could drive earnings growth through increased transaction fees and other sources.

The Heungkuk Securities Research Center stated, "President Lee's pledges to codify directors' fiduciary duties, mandate the cancellation of treasury shares, and introduce a 'one-strike out' rule for stock price manipulation will enhance market transparency and lead to increased trading volume and normalized valuations, thereby supporting the growth of the securities industry." The center added, "However, it is necessary to take a long-term approach, considering uncertainties regarding the specifics and timing of policy implementation, the technical burden from the recent rapid surge in securities stocks, and the time required to restore investor confidence."