[Market Focus]After Securities Stocks, Insurance Stocks... Broad-Based Rally

On the 20th, share prices of listed insurance companies such as Hanwha Life Insurance and Lotte Non-Life Insurance showed strong gains, with some hitting the upper price limit.

As of 2:45 p.m. that day, Mirae Asset Life Insurance was trading at 12,400 won, up 29.98% from the previous day. Lotte Non-Life Insurance also stood at 2,525 won, up 29.95% from the previous day. Both entered the upper price limit during the morning session and have not moved since. Heungkuk Fire & Marine Insurance likewise hit the upper price limit, while Hanwha Life Insurance was trading at 6,470 won, up 27.36% from the previous day. Among insurance stocks, Samsung Life Insurance and Samsung Fire & Marine Insurance, which have relatively large market capitalizations, rose 4.42% and 7.19%, respectively.

As financial and securities stocks have surged sharply in a short period recently, a rotation into insurance stocks is emerging. In addition, there are expectations that if the third amendment to the Commercial Act, which includes mandatory retirement (cancellation) of treasury shares, passes the National Assembly, share prices of insurance companies with a significant proportion of treasury stock will also respond. This is because when treasury shares are retired, the total number of shares decreases, thereby increasing the value per share and earnings per share (EPS).

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