KB Securities Offers 4 Direct Indexing Presets Related to Value-Up

KB Securities announced on the 8th that it will additionally provide three types of presets related to low price-to-book ratio (PBR) and undervalued stocks as part of its corporate value-up program through the 'KB Securities Direct Indexing' service.

On the 1st of last month, KB Securities quickly selected stocks with low PBR that were undervalued among listed common stocks, focusing on those with a high treasury stock ratio that could benefit from a future revaluation of Korean stocks, and provided the 'Corporate Value-Up Low PBR & Undervalued Stocks' preset. Furthermore, after the announcement of the corporate value-up program on February 26, three additional presets were added using KB Asset Management’s Myport, the direct indexing engine software.

Since early February, when the corporate value-up program aimed at resolving the Korea discount (undervaluation of the Korean stock market) was anticipated, investors’ interest has continued as a selection process for undervalued stocks has been carried out up to the present policy announcement.

According to the announcement on February 26, the program includes detailed policies such as strengthening listed companies’ autonomous efforts to enhance corporate value, supporting investment liquidity for companies that respect shareholder value, and systematic support for mid- to long-term investment policies and investor communication enhancement.

Reflecting this atmosphere, at the end of February, foreign net purchases amounted to 8.2 trillion KRW according to Korea Exchange data, showing a large-scale buying trend in the domestic stock market throughout February, and the foreign investors’ 'BUY KOREA' movement has continued this year.

The three new presets related to the corporate value-up program are diversified to allow investment not only in undervalued stocks but also in stocks related to future improvements in return on equity (ROE) and capital expenditure (CAPEX) growth. Investors can select from portfolios pre-presented by experts and quickly invest by editing their own corporate value-up investment strategies.

According to the government’s disclosed schedule, in September, a 'Korea Value-Up Index' composed of companies with good profitability and market evaluation will be developed for institutional and foreign investors to use as a benchmark indicator. An exchange-traded fund (ETF) tracking this index will be launched and listed in December, enabling general investors to invest in companies with excellent corporate value.

President Lee Hong-gu said, "The corporate value-up program is not a one-time policy but is expected to provide various investment opportunities to customers from a mid- to long-term perspective." He added, "Investors interested in the corporate value-up program are encouraged to use KB Securities Direct Indexing to seek prompt investment strategies." He also stated, "KB Securities will actively align with the government’s corporate value-up program and strive to satisfy customers by supporting diverse content under the catchphrase 'Value-Up KB Securities.'"

The KB Securities Direct Indexing service is currently available on KB Securities’ Mobile Trading System (MTS) KB M-able (M-able), and offers trading commission benefits for non-face-to-face services limited to the company’s receipt fees.

This content was produced with the assistance of AI translation services.