1,492 Trillion Won Traded... Despite Stock Market Rally, "Just Get On Quickly!" [Weekend Money]

Monthly Transaction Volume Hits All-Time High in April
"Securities Sector Outlook Remains Positive"

With the domestic stock market experiencing a boom and market transaction volume increasing, investment expectations for the securities sector—where brokerage fees are on the rise—are also growing.

Ahn Youngjun, a researcher at Kiwoom Securities, stated in a recent report titled "Securities - Just Board Quickly," "We believe the market has entered a phase in which the upper limits of the domestic stock market and transaction volume are expanding, thanks to integrated accounts for foreigners and other factors." He added, "Every time domestic securities firms formalize partnerships with major global brokerage companies, such expectations could be further reflected in their share prices."

Researcher Ahn predicted that the easing of regulations on integrated accounts for foreigners will lead to a full-fledged inflow of foreign capital into the domestic stock market. In the past, foreigners needed an account with a domestic securities firm under their own name to trade Korean stocks. Now, however, foreign brokerages can place batch orders with domestic securities firms on behalf of local investors. Just as domestic investors can invest in overseas stocks through Korean brokers, foreign investors can now invest in Korean stocks through their local brokerages.

He noted that although integrated accounts for foreigners are still in a pilot phase, it is only a matter of time before active trading takes off. For example, he explained that financial authorities announced a comprehensive roadmap for the foreign exchange and capital markets last January to facilitate Korea's inclusion in the MSCI Developed Markets Index, demonstrating efforts to improve market accessibility for foreigners.

In addition, he highlighted that the total transaction volume in the domestic stock market last month reached a record high of 1,492 trillion won, which is a positive factor for securities stocks. Ahn said, "This figure represents a 14% increase compared to the first quarter, which had already set an all-time quarterly record," adding, "The bullish market continues to drive improvements in key related indicators." He further stated, "As accessibility to the domestic stock market improves, the potential for large-scale liquidity inflows increases, and the securities sector is expected to directly benefit from this process."

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