South Korea's 10 largest brokerages posted a record profit of almost 6 trillion won (about $4.356 billion) for the second quarter, but their shares have shown persistent weakness. Combined consolidated net profit for Mirae Asset, Korea Investment, Samsung, KB, NH, Shinhan, Meritz, Kiwoom, Hana and Daishin came to 5.9362 trillion won (around $4.310 billion), up 37% from the previous quarter and 141% from a year earlier, according to the Korean financial investment industry on the 29th.
Despite the strong earnings, the market has not rewarded the sector. The Korea Exchange securities industry index closed at 9,804.97 on May 9, hitting its intra-year high, and then retreated sharply. In June the index dropped to the 6,400-7,400 range; in July it slipped to the 4,700-6,400 range; this month it has been moving between 5,000 and 5,500.
The second-quarter numbers set a record, with both sequential and annual growth, but the share prices of these brokers have remained under pressure. The gap shows earnings strength has not translated into stock market gains.
South Korea's biggest securities firms posted record net profit in the second quarter, but their stock prices have remained weak.
According to the Korean financial investment industry on the 29th, the combined net profit of the country's 10 largest brokerages — Mirae Asset, Korea Investment, Samsung, KB, NH, Shinhan, Meritz, Kiwoom, Hana and Daishin — reached 5.9362 trillion won (around $4.310 billion) on a consolidated basis in the second quarter. That represents growth of 37% from the previous quarter and 141% from a year earlier. A headline estimate had put the total at nearly 6 trillion won, or about $4.356 billion.
The stock market has not matched that performance. The Korea Exchange securities industry index closed at 9,804.97 on May 9, the highest level of the year, and then fell sharply. It moved in the 6,400-7,400 range during June, weakened to the 4,700-6,400 range in July, and has traded between 5,000 and 5,500 this month. That leaves the index clearly below its spring peak.
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