Bank stocks 5monthly weakness persists; second-half interest rates and shareholder returns in focus
The KRX Bank Index 5month 4–29fell 8.54%. Analysts cite the possibility of a Bank of Korea rate hike in the second half and expectations for shareholder returns from bank stocks as potential drivers of a rebound.
The KRX Bank Index 5month (4–29) fell 8.54%. Over the same period, the KOSPI rose %. The KRX Bank Index comprises KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group, and Industrial Bank of Korea, among others.28.45Recently, strength in the domestic stock market has continued, led by the semiconductor sector. This has made the relative weakness of bank stocks more pronounced. Differences in fund flows between sectors have affected index performance.
From the start of the year through 30, the KRX Bank Index rose %. However, 25.16month’s correction 5is seen as reflecting the impact of some profit-taking. Analysts pointed this out.
Recently, strength in the domestic stock market has continued, led by the semiconductor sector. This has made the relative weakness of bank stocks more pronounced. Differences in fund flows between sectors have affected index performance.
Securities firms point to the possibility that the Bank of Korea will raise interest rates in the second half of the year. Expectations are also growing for banks to step up shareholder return policies in earnest. These factors are cited as the backdrop to the stock price rebound.
Each financial holding company among the KRX banking index constituents is announcing its own shareholder return plans, including dividends and share buybacks. The disclosures and announcement dates differ by company. The details of the plans are being clarified through individual disclosures.
The Korea Exchange’s index data and securities firms’ outlooks are facts made public that day. The Bank of Korea’s future policy decisions and disclosures by individual banks remain additional variables. The relevant figures are based on exchange data and securities company reports.
Sources: 파이낸셜뉴스 증권
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