Domestic bank and insurance stocks showed strong gains early on the 3rd. Amid limited index rebounds due to a sharp surge in U.S. market interest rates, attention has turned toward these sectors as beneficiaries of rising rates.
By 10:55 a.m., the KRX Insurance Index rose 162.16 points (3.65%) from the previous trading day to close at 4,603.67, while the KRX Bank Index climbed 42.57 points (2.51%) to reach 1,736.61, securing the top two positions among KRX sector indices in terms of gains.
On a stock-by-stock basis, Hanwha Life rose 380 won (6.59%) to trade at 6,150 won, and DB Insurance traded at 202,500 won, up 11,600 won (6.08%).
KB Financial Group rose 9,200 won (5.44%) to 178,300 won, and JB Financial Group climbed 1,550 won (5.07%) to 32,100 won, both posting gains in the 5th% range.
BNK Financial Group rose by around 4%, while Hana Financial Group, Shinhan Financial Group, Samsung Fire & Marine Insurance, Mirae Asset Life, Korean Re, and Lotte General Insurance all posted gains in the 3rd% range. Overall, most stocks within these sectors moved higher.
In the stock market, banks and insurance companies are traditionally seen as defensive plays during periods of rising interest rates. This is because when rates rise, banks can expect an expansion of their net interest margin (NIM) and increased interest income, while insurers may see improvements in solvency ratios due to a reduction in the value of their liabilities.
Among insurance stocks, property and casualty insurers have also seen buying pressure, likely driven by expectations of favorable policy developments. Starting from the 10th of this month, the procedure for covering medical expenses for car accident patients requiring treatment beyond eight weeks will be reviewed by the Korea Automobile Insurance Development Institute.
Kang Seung-geon, a researcher at KB Securities, stated, "We must also consider the possibility that demand for treatment among patients within eight weeks may increase," while adding, "The impact of regulatory improvements is expected to appear as an improvement in the profit and loss of automobile insurance."
The KOSPI Index opened 87.61 points (1.33%) higher than the previous trading day at 6,650.33 and was trading up 61.63 points (0.94%) to 6,624.35 at this time, continuing its upward trend of around 1%.
While Samsung Electronics and SK Hynix, the top two companies by market capitalization, rose between 0% and 1%, limiting the index's gains, rotation trading is supporting the market. Among sectors other than banks and insurance, KOSPI Transportation Equipment and Electric & Gas rose around 2%, while Chemicals, Metals, and Machinery Equipment showed gains in the 1st% range.
Across both Korea Exchange and Next Trading, other corporations purchased a net total of 513.2 billion won, and institutional investors bought a net total of 40.6 billion won, while retail investors sold a net total of 391.1 billion won and foreign investors sold a net total of 163.7 billion won. The inflows from other corporations reflected share buyback activities by Samsung Electronics and SK Hynix in the domestic market.
in STOCK
