With securities stocks emerging as leading stocks in the second half, securities firms have moved to block 'debt investment' (investing with borrowed money). As securities stocks saw a rapid increase in prices in a short period, securities firms have been restricting credit loans or raising the margin requirement for margin trading in order to prevent speculative transactions.
If stock prices continue to rise, it’s not a problem, but if future stock prices turn down and individual investors are unable to repay the borrowed money, this will directly translate into losses for the securities firms.
According to the financial investment industry on the 15th, Meritz Securities and Toss Securities have raised the margin requirement for Bookook Securities from 50% to 100% starting from the 14th. This means that short-term margin trades cannot be used, and purchases can only be made with 100% cash. Shinhan Investment Corp has restricted credit loans for Bookook Securities since the 10th due to the recent short-term surge.
Mirae Asset Securities has slightly raised the margin requirement for Eugene Securities and Shinyoung Securities from 30% to 40%, and lowered the credit loan limit from 60% to 50%. For Samsung Securities, the margin requirement for Mirae Asset Securities was increased from 30% to 40%.
For preferred stocks with relatively low trading volumes, credit transactions have been restricted since last week. Meritz Securities adjusted the margin requirement for Daishin Securities and Mirae Asset Securities 2nd preferred stock from the previous 40% to 100% on the 11th, and Shinhan Investment Corp and Korea Investment & Securities also changed these two stocks to credit loan ineligible stocks on the same day.
The recent surge in securities stocks is attributed to the government's push for a revision of the Commercial Act mandating the cancellation of treasury shares and the increased expectations for the introduction of separate taxation on dividend income to revitalize the stock market. Furthermore, the domestic stock market has shown an upward trend since last month, contributing to optimistic performance forecasts which have boosted stock prices.
In fact, over the past month (from June 13 to July 14), the 'KRX Securities' index surged by 24.50%, more than double the increase of the KOSPI index (9.66%). During the same period, Bookook Securities rose by 58.65%, marking the largest increase among securities stocks. Hyundai Motor Securities (39.95%), DB Securities (38.56%), Kyobo Securities (30.12%), Shinyoung Securities (29.82%), Daishin Securities (29.71%), NH Investment & Securities (28.85%), Yuanta Securities Korea (27.71%), and Samsung Securities (26.33%) followed.
Among securities firms, Mirae Asset Securities (40.8 billion won) had the largest increase in the amount of credit balances over the past month, placing it among the top 10 listed companies on the KOSPI. Samsung Securities (14.2 billion won, 30th), Kiwoom Securities (11.5 billion won, 37th), and Hanwha Investment & Securities (7.8 billion won, 51st) also experienced a surge in credit balances during this period.
Some analysts predict that the upward potential for securities stocks may not be large. Mirae Asset Securities and BNK Securities have downgraded their investment opinions on the securities sector from 'overweight (buy)' to 'neutral' this month. Kim In, an analyst at BNK Investment & Securities, noted, 'While the benefits of securities stocks due to the potential for further rises in the KOSPI are acknowledged, the recent increase in stock prices has partially reflected this potential.'
Jeong Tae-jun, an analyst at Mirae Asset Securities, stated, 'Recently, the securities industry has been bolstered by various expectations, such as the bullish stock market, increased shareholder returns, and participation in the stablecoin market, resolving its undervaluation.' He added, 'The current expectations reflected in stock prices exceed realistic limits, so it is necessary to prepare for the potential dissipation of these expectations.'