[Edaily Reporter Park Soon-yeop] Analysts are suggesting that investors should once again turn their attention to securities stocks, which have been relatively neglected while the domestic stock market continues its sharp rally. This is because their stock price returns have lagged significantly behind the KOSPI, making them more attractively valued, and because rising trading volumes in domestic stocks and exchange-traded funds (ETFs) are expected to boost securities firms’ second-quarter earnings.
Ko Yeon-soo, an analyst at Hana Securities, maintained an “Overweight” investment rating on the securities sector on the 18th, stating, “As capital inflows into the domestic stock market are expected to continue, investors should view any stock price corrections caused by concerns over interest rate hikes as buying opportunities.”

According to Hana Securities, the KRX Securities Index rose only 6.1% on a cumulative basis through the second quarter of this year, lagging the KOSPI’s return by 68.5 percentage points over the same period. On a stock-by-stock basis, #Samsung Securities rose 40.8%, #Korea Financial Holdings rose 16.2%, and #NH Investment & Securities rose 12.3%, showing relatively strong performance, though they still fell short of the KOSPI’s rate of increase. For #Mirae Asset Securities and #Kiwoom Securities, fading expectations for a SpaceX IPO and concerns over a slowdown in trading volume market share, respectively, weighed on their stock prices.
As the possibility of a benchmark interest rate hike in the second half of the year comes into focus, the market is concerned about securities firms’ bond valuation losses and a slowdown in trading profits. However, Analyst Ko noted that since most securities firms are implementing hedging strategies for their bond positions, the scale of losses resulting from rising interest rates is likely to be more limited than feared. In fact, he believes that increased valuation gains from stocks, driven by the strong stock market, could partially offset the burden of rising interest rates.
Above all, the favorable retail business environment is cited as the basis for a rebound in securities stocks. Cumulative daily average trading volume on the domestic stock market for the first half of the year reached 89 trillion won, a 33% increase from the previous quarter. Average daily trading volume for ETFs also rose by 42% over the same period to 25 trillion won. In particular, since June, average daily trading volume in the domestic stock market has been approximately 101 trillion won, maintaining a high level of around 100 trillion won following May’s 106 trillion won.
Researcher Ko explained, “If the current level of trading volume continues, the second-quarter net profits of the brokerages we cover are estimated to exceed the market consensus by an average of about 20%.”
Hana Securities identified Korea Financial Holdings and Samsung Securities as its top picks in the securities sector. Korea Financial Holdings was viewed positively as its reliance on Korea Investment & Securities is decreasing, while the contribution from its subsidiaries’ earnings is expanding. While Korea Investment & Securities’ contribution to pre-tax profit stood at around 80% in 2024, it fell to approximately 70% in the first quarter of this year. Analysts also note that the expansion of subsidiaries’ proprietary trading—from a focus on traditional deposits and savings accounts to stocks and ETFs—could lead to increased unrealized gains amid the current bull market.
Samsung Securities is assessed to benefit significantly from rising trading volumes, as the proportion of revenue from brokerage and wealth management (WM) stands at 50%—higher than that of other securities firms. As average commission rates for domestic and international stocks remain high, the company is expected to see significant earnings improvement as the retail market recovers. In addition, the Samsung Group’s acquisition of a stake in Dunamu was cited as a medium- to long-term growth driver. Analysts note that there is potential for business expansion through a division of roles among affiliates: Samsung Securities in the trading and distribution of digital assets and tokenized securities; Samsung Card in payment and membership integration; and Samsung SDS in the development of blockchain infrastructure and custody systems.
Kiwoom Securities was highlighted as a stock to watch. Following the announcement of its first-quarter earnings, Kiwoom Securities’ price-to-book ratio (PBR) fell from 1.5x to 1.2x as expectations for a recovery in its retail market share diminished. However, analysts note that the possibility of regaining market share remains if retail investor participation expands alongside a rebound in the KOSDAQ market.
Researcher Ko stated, “Even if market share does not recover in the short term, Kiwoom Securities’ valuation appeal could come back into focus alongside upward revisions to domestic stock market trading volume estimates.”
Hana Securities projected the 2026 PBRs for Korea Financial Holdings and Samsung Securities at 1.0x and 1.2x, respectively. The expected dividend yields were estimated at 4.0% for Korea Financial Holdings and 5.6% for Samsung Securities.