Samsung Securities Jumps 28% as Foreign Trading Service Nears Launch

Brokerage Stocks Surge as Kospi Hits Record High

Brokerage stocks rallied across the board after the Kospi rose above 6,900 to a record high. Samsung Securities led the advance on news that it is close to launching a service for global retail investors to trade South Korean stocks.

Brokerage shares soared on the main Kospi market on May 4. Samsung Securities closed at 137,900 won, up 28.28% from the previous session. The stock briefly hit its daily upper limit of 139,700 won and set a fresh 52-week high. Yuanta Securities Korea rose 14.86%, Korea Investment Holdings gained 9.17%, Hanwha Investment & Securities climbed 9.05%, Mirae Asset Securities advanced 8.49%, NH Investment & Securities added 8.32%, and Kyobo Securities jumped 7.92%.

Samsung Securities surged on news that it will soon launch a service allowing foreign investors to trade domestic stocks directly. According to the brokerage industry on May 4, the firm has recently been piloting an omnibus account service for foreign investors with Interactive Brokers, or IBKR, a major US online brokerage. The service will allow foreign investors to trade South Korean stocks through their local brokerage firms.

IBKR has about 4.6 million client accounts across the US, Europe and Asia. Once the service launches, IBKR users will be able to place orders through Samsung Securities' system without separate complicated procedures.

Park Ju-yeon, Hankyung.com reporter grumpy_cat@hankyung.com