On the 2nd, one day before the 21st presidential election, financial stocks are expanding their declines during the trading session. As these stocks were considered beneficiaries of policies during the election period and their prices rose sharply, it seems investors are taking profits.
KB Financial Group was trading at 99,000 won in the KOSPI market at 1:51 p.m. The stock price fell by 5.08% (5,300 won) compared to the previous trading day. The market capitalization in the KOSPI also gave up its 5th place to Hanwha Aerospace.
Other bank stocks such as Shinhan Financial Group, Hana Financial Group, Woori Financial Group, JB Financial Group, and BNK Financial Group are also weak.
Insurance stocks such as Samsung Fire & Marine Insurance and DB Insurance, as well as securities stocks like Shinyoung Securities, Kyobo Securities, and Korea Investment Holdings, were also traded at lower prices than the previous trading day.
Several factors are cited as the background for the decline of financial stocks. First, there is uncertainty regarding financial policies of the new government due to the regulatory nature of the industry. Concerns were also raised that revising the dividend income tax, which is a key background for investment in financial stocks, may not be as easy as the market expects.
Above all, it is interpreted that many investors are adjusting their positions as the stock prices have risen significantly. The securities, banking, and insurance sectors showed an upward rally last month. Based on the KRX index, securities jumped 23% over the month, while banking and insurance rose by 10.9% and 10.5%, respectively.