Recently, major securities firms have simultaneously raised their target prices for brokerage stocks.
The most significant factor behind this is the unprecedented surge in stock market trading volume. In February 2026, the KOSPI's average daily trading value reached 32.2 trillion won, a sharp increase from January. When combined with the new Alternative Trading System (ATS), the daily average in January had already surpassed 62 trillion won. This explosive growth in trading directly translates to higher brokerage commission revenues for securities firms, which is why analysts are upgrading their earnings forecasts.
So, what caused this trading frenzy? It's a combination of several factors. First, structural improvements laid the groundwork. The launch of the ATS 'Nextrade' extended trading hours, and a temporary fee cut by the Korea Exchange (KRX) lowered transaction costs, boosting activity. Second, a powerful semiconductor rally and the government's 'Value-up' program attracted a wave of new capital. Finally, the extreme market volatility in early March, which saw a record-breaking crash followed by a sharp rebound, acted as a direct catalyst, dramatically increasing trading turnover.
This wasn't happening in a vacuum, though. The broader financial environment was also very supportive. The Bank of Korea has held its key interest rate steady at 2.50%, providing a stable backdrop for riskier assets like stocks. On top of that, major institutional investors like the National Pension Service have been increasing their allocation to domestic stocks, creating a solid base of demand and stabilizing the market.
However, it's important to look at valuations. While the optimism is justified, the stock prices of major brokerage firms have already risen significantly. Their P/B ratios are now at the top end of their historical ranges. This suggests that the market has already factored in a large portion of the expected earnings boost. For prices to climb even higher, this new 'regime' of high trading volume needs to prove it's sustainable, not just a temporary spike.
- Brokerage: Commission-based revenue that securities firms earn from executing trades on behalf of clients.
- P/B Ratio (Price-to-Book Ratio): A valuation metric that compares a company's stock price to its book value (assets minus liabilities) per share. A high P/B ratio can indicate that a stock is overvalued.
- Value-up Program: A government-led initiative in Korea aimed at encouraging companies to improve corporate governance and increase shareholder returns, thereby boosting their market valuation.