Bank stocks 5despite monthly weakness, brokerages see potential in second-half interest rates and shareholder returns
The KRX Bank Index 5month (4~29) fell % over the month, but brokerages say a rebound could take shape, citing the possibility of a Bank of Korea rate hike in the second half and expectations for expanded shareholder returns. Since the start of the year, the KRX Bank Index has risen 8.54%25.16.
The KRX Bank Index 5month (4~29) fell % over the month. Over the same period, the KOSPI rose 8.54%28.45. The KRX Bank Index comprises KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group and Industrial Bank of Korea, among others.
From the start of the year through 30, the KRX Bank Index rose 25.16%. Brokerages attribute the recent share price decline to some profit-taking. The market also points to the deepening concentration of investment in certain sectors, such as semiconductors, as a factor behind the relative weakness of bank stocks.
Brokerages view the possibility of a Bank of Korea rate hike in the second half as one potential catalyst for a rebound in bank stocks. They also say that expectations for banks to implement shareholder-return policies in earnest could support share price momentum. This view is reflected in reports from multiple securities firms.
Market participants said that among the KRX Bank index constituents, large financial holding companies led the index’s decline. Individual banks may disclose shareholder return plans, including dividends and share cancellations, in the future. Investors are watching announcements related to interest rates and shareholder returns.
Market trends show a clear divergence between sectors. If the strength in semiconductors continues, funds may flow away from financial stocks. Conversely, rising interest rates and expanded shareholder returns could change earnings expectations across the financial sector.
Sources: 파이낸셜뉴스 증권
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