Mirae Asset Securities has overtaken major banking groups in market capitalization, lifted by surging earnings and a roaring equity market.
As of Friday’s close, the brokerage was valued at 40.2 trillion won ($27.8 billion), its first finish above the 40 trillion won mark. Shares ended at 70,900 won after touching an all-time intraday high of 74,400 won.
The valuation places Mirae Asset ahead of Hana Financial Group and Woori Financial Group, which stood at 36.54 trillion won and 29.95 trillion won, respectively. Mirae Asset first surpassed Woori on Jan. 29 and moved past Hana on Thursday. Now, only KB Financial Group, Shinhan Financial Group and Samsung Life Insurance remain larger among financial peers.
The climb has been dramatic. A year ago, Mirae Asset traded at about 8,800 won per share, implying a gain of more than 700 percent and a jump of 54 places into the top 20 by market cap. Just this year, the shares more than tripled in value.
Mirae Asset’s rally reflects a broader industry surge. The KRX Securities Index has doubled this year, the strongest performance among Kospi sector indices, including a near 30 percent gain in the four sessions from Feb. 12 to Feb. 20. Major brokerages such as NH Investment & Securities, Korea Investment Holdings and Samsung Securities have hit record highs, with smaller firms also advancing on the sectorwide upswing.
Robust earnings have underpinned the rally. The top 10 brokerage houses posted a combined 9.11 trillion won in net income last year, up 43 percent. Korea Investment & Securities exceeded 2 trillion won in annual net profit for the first time, followed by Mirae Asset, which recorded 1.6 trillion won, its highest on record and a 72 percent increase on-year.
Meanwhile, the Kospi has climbed 38 percent so far this year, bolstering expectations of sustained earnings growth and further gains in securities stocks.
jwc@heraldcorp.com
