The KOSPI set a new record high on Friday, breaking through the 7,500 level in early trading after surpassing the "dream 7,000 line" the previous day, but brokerage stocks are moving lower. The decline is attributed to profit-taking following the previous day's sharp gains.
According to the Korea Exchange, the KOSPI briefly surpassed 7,530 intraday, continuing its upward trend, but pared some gains as foreign investors continued selling. As of 7:45 a.m., the KOSPI was trading at 7,358.82, fluctuating within a narrow range.
Despite the index's strength, brokerage stocks are falling across the board. Hanwha Investment & Securities is trading at 8,500 won, down 9.28% from the previous day, while LS Securities is also down 8.44% at 8,250 won. Shares of major brokerages including Mirae Asset Securities (006800.KS) and Daishin Securities are also falling 6% to 7%, while NH Investment & Securities (005940.KS) and Samsung Securities (016360.KS) are weakening 3% to 4%. With brokerage stocks broadly declining, selling pressure has spread across the sector.
This reflects the burden of the previous day's sharp rally. Brokerage stocks had surged in unison as expectations grew for increased trading volume when the KOSPI broke through the 7,000 level, but the desire for profit-taking also grew quickly given the large short-term gains. In fact, Mirae Asset Securities, Kiwoom Securities (039490.KS) and Korea Investment Holdings posted gains in the 10% range the previous day.
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