The KOSPI has closed in on the 9,000 mark with successive record highs, yet brokerage stocks are moving in the opposite direction. Brokerage shares are typically considered prime beneficiaries during stock market rallies, supported by rising trading volumes and improving investor sentiment. But recent gains have been concentrated in large-cap semiconductor stocks, leaving the brokerage sector behind.
According to the Korea Exchange on Tuesday, the KOSPI rose 28.45% last month, while the KRX Securities Index fell 4.34%. It marks the first time this year that the KOSPI and the brokerage index have moved in opposite directions. From January through April, the two had moved in tandem. A surge in first-quarter trading volumes fueled expectations of improved earnings at brokerages, lifting both the KOSPI and brokerage stocks together. The mood shifted in May, however. As the KOSPI staged a sharp rally led by semiconductor stocks, brokerage shares turned weak, producing the decoupling.
Individual brokerage stocks have also underperformed. Over the past month, Samsung Electronics (005930.KS) jumped 36.6% from 232,500 won to 317,000 won, while SK hynix (000660.KS) surged 61.2% from 1.447 million won to 2.333 million won. By contrast, Mirae Asset Securities (006800.KS) fell 12.3% over the same period from 70,300 won to 61,400 won, while Samsung Securities (016360.KS) dropped 13.1%, Kiwoom Securities (039490.KS) declined 12.3% and NH Investment & Securities (005940.KS) slid 17.1%, with most brokerage stocks broadly falling.
The chief reason cited for the brokerage sector's weakness is the concentration of gains in semiconductor stocks. The recent KOSPI rally has been driven by large-cap chip names including Samsung Electronics and SK hynix. Market funds have also flowed into stocks related to artificial intelligence (AI), semiconductors and humanoids, limiting the spillover of liquidity into the brokerage sector. "Earnings typically follow a front-loaded pattern, with stock prices tending to reflect this in advance," said Park Hye-jin, an analyst at Daishin Securities. "The weakness in brokerage stocks appears to largely reflect the fact that a full year's worth of earnings was already priced in during the first quarter."
