KRX Banks 5one-month 8.54% decline; second-half interest rates and dividends in focus
The KRX Banks 5month (4~29 day) fell by 8.54% over the month, as expectations emerged for a possible Bank of Korea rate hike in the second half and more substantial shareholder returns from the banking sector. It was also noted that the index has risen 25.16% since the start of the year.
The KRX Banks 5month (4~29 day) fell by 8.54% during the period. Over the same period, the KOSPI was recorded as rising by 28.45%. The index’s decline during this period is interpreted as reflecting market profit-taking.
The KRX Banks Index comprises major banks, including KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group, and Industrial Bank of Korea. Most of its constituents are bank stocks. Moves in individual financial companies are directly reflected in the index.
The index had risen 30% through the 25.16th of last month since the start of the year. Some investors appear to have taken profits during this period. As a result, this led to weakness in 5.
There is growing sentiment that concentration in the semiconductor sector has intensified in the domestic stock market recently. Analysts say this has left bank stocks relatively weak. The concentration of investment across sectors is widening share-price disparities between them.
Securities firms believe that the possibility of a Bank of Korea rate hike in the second half of the year and expectations of expanded shareholder-return policies by banks could give bank stocks momentum for a rebound. Specifically, dividend increases or announcements of share buybacks could affect share prices, according to their view. A number of securities firms have issued related opinions.
Kim Min-woo, a researcher at Samsung Securities, is also reported to have offered a view on bank stocks. His view includes points related to the underlying fundamentals of the banking sector. Detailed comments can be found in reports from the respective securities firms.
Sources: 파이낸셜뉴스 증권
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