The headquarters of Mirae Asset Securities in Seoul. The brokerage led the strong
performances of South Korean securities companies in the third quarter. Photo
courtesy of Mirae Asset Securities
SEOUL, Nov. 12 (UPI) — South Korea’s leading brokerage houses delivered solid performances in the third quarter of this year, thanks to the recent bullish run in the Seoul bourse.
The country’s business bellwether, Mirae Asset Securities, said early this month that it netted $234 million in profit for the July-September period, up 18.8% from a year earlier.
The Seoul-based company’s sales also jumped 22.5% year-on-year to reach $4.55 billion, the largest in the industry.
Korea Investment & Securities said Tuesday that its third-quarter net profit nearly doubled to $413 million, while turnover just edged up 0.4% to $3.85 billion.
Another major player, Samsung Securities, chalked up $1.86 billion in sales, down 1.5% from a year before, for a net income of $211 million, up 28.7%.
Market observers point out that the strong rally in the Korean stock market underpinned the stellar earnings of local securities companies. During the third quarter, the benchmark KOSPI advanced more than 11%.
Their upward momentum is expected to continue because the KOSPI has surged by over 20% since Oct. 1, surpassing the 4,000-point mark for the first time.
“Steady capital inflows into the equity market are expected for the time being, providing a favorable tailwind for domestic brokerages’ earnings,” Kyobo Securities analyst Kim Ji-young said in a media interview.
The share price of Mirae Asset Securities rose 6.97% on Wednesday, while Samsung Securities soared 8.65%. Korea Investment & Securities, which is unlisted, saw its parent company, Korea Investment Holdings, gain 3.95%.