Latest news with #KRX
Korea Herald
06-08-2025
- Business
- Korea Herald
KRX eyes 12-hour trading to counter Nextrade's rapid rise
Industry wary of operational strains, system risks tied to extended trading South Korea's main bourse operator, the Korea Exchange, is pushing to implement a 12-hour trading system in a bid to secure its market share against the emerging alternative trading platform Nextrade. The KRX is considering extending stock trading hours -- currently 9 a.m. to 3:30 p.m. -- to 8 a.m. to 8 p.m., according to industry sources. Though the bourse operator is yet to announce an official stance, it is currently gathering feedback from brokerages and other market participants on the proposed change. In late June, it sent out a survey to brokerage firms on the proposal. The original deadline for responses was set for July 31, but the KRX decided to extend the period to this week after many firms failed to submit their answers in time. The survey asks member firms to choose among proposed options for how the extended 12-hour trading session should be structured. Currently, the market operates with a pre-opening session from 8:30 a.m. to 9 a.m., regular trading from 9 a.m. to 3:30 p.m., followed by an after-closing session from 4 p.m. to 6 p.m. During the pre-market and after-hours sessions, only single-price trading is available. According to the proposals, the KRX is considering moving the regular market opening one hour earlier, or operating a pre-market session from 8:00 a.m. to 8:30 a.m. After main market hours, an after-market session is likely to run from 3:40 p.m. until 8 p.m. If the KRX extends its trading hours, it would mark the first change since 2016, when the closing time was moved from 3 p.m. to 3:30 p.m. The bourse operator's push for longer trading hours comes on the back of the successful operation of Nextrade, the country's first alternative stock exchange, earlier this year. Launched in March, the alternative trading platform has quickly gained ground, capturing a market share of over 30 percent, backed by longer trading hours and lower commissions. The Nextrade operates from 8 a.m. to 8 p.m. but trades only a limited number of shares. In July alone, the platform's average market share stood at 31.66 percent, a near tenfold increase from 3.8 percent in March. With only Nextrade and the KRX operating in the market, Nextrade's growth comes at the expense of the KRX's market share, leading to reduced transaction commissions and directly undermining its profitability. Though the overall market trading volume, combining the benchmark Kospi and secondary Kosdaq, increased from roughly 3,075 trillion won in January–July last year to 3,180 trillion won this year, the KRX's trading volume fell from 3,000 trillion won to 2,500 trillion won on-year. The industry response remains lukewarm, with concerns mounting over the operational strains the extension could impose. 'Most brokerages are likely to face significant burdens from system modifications and increased labor expenses to support and monitor the extended trading hours,' an official from a local brokerage firm said. 'Without sufficient preparation, system errors could occur as they did when Nextrade was first launched.'
Korea Herald
11-06-2025
- Business
- Korea Herald
Lee Jae-myung vows dividend boost, transparency in capital market
President calls for measures to seize profits from unfair stock transactions President Lee Jae-myung on Wednesday pledged to map out various incentives for listed companies on South Korean stock markets to pay out more dividends, saying the stock market could play a key role in boosting the national economy. "In other countries, people buy blue-chip stocks and use the dividends paid from them to supplement their living expenses, which boosts domestic consumption and contributes to a virtuous cycle in the economy, but (companies in) our country are not willing to pay dividends," said Lee during a meeting with representatives of the Korea Exchange, South Korea's main stock market operator, which is also tasked with market oversight. President Lee also said South Korean stocks tend to lag behind in dividend payments compared to other countries such as China. "There must be various reasons for that. So we are preparing for tax code reforms and policy improvements to boost dividends," Lee said. "If equities become an alternative destination that people find as attractive as real estate, then by allowing people to get more dividends and make money to cover living costs, companies will find it easier to attract capital, and a virtuous cycle will be created," he also said. The remarks came as South Korea's stock market hit a three-year high, extending a winning streak that started with his inauguration the previous week. Lee, who took office on June 4, also said restoring transparency in South Korea's capital market was his priority. Meeting the KRX representatives, including 55 rank-and-file employees of the bourse operator, Lee stressed the need for stronger market monitoring to tackle unfair trading practices -- namely, insider trading, market manipulation and market disruption. "At the core of a capitalist economy lies the stock market," Lee said. "The most important task is to resolve, or at least alleviate, the unfairness and opacity of the stock market." Later in the afternoon, Lee's spokesperson elaborated on the president's remarks that the government would respond firmly to unfair trading by implementing a "one strike, you're out" policy for acts such as stock manipulation. The government would seek measures to recover illicit gains through fines equal to the profits obtained,' his spokesperson Kang Yu-jung told reporters. During his presidential election campaign, Lee pledged to improve market liquidity for stock investors and come up with measures to better distribute profits to shareholders. Lee, the former leader of what was then the main opposition party, has also called for a legal revision to require boardrooms at South Korean companies to fulfill their fiduciary duty not only to their companies but also to their shareholders. The Kospi -- South Korea's benchmark stock index -- hit its highest point in about three years and five months, continuing its winning streak for a fifth consecutive trading day since Lee's inauguration on June 4. The market did not operate on Friday due to the observance of National Memorial Day. At 3 p.m. Wednesday, the Kospi stood at 2,903.10 points, up more than 1 percent from the previous day's close. Over the first week of Lee's presidency, the index had risen nearly 8 percent. Foreign investor net inflows also continued for the past five trading days, including net purchases of 93.2 billion won ($68 million) on Wednesday as of around 3 p.m.
Yahoo
29-05-2025
- Business
- Yahoo
DA Davidson Lowers Price Target on First Citizens BancShares, Keeps Neutral Rating
On May 29, DA Davidson lowered its price target for First Citizens BancShares, Inc. (NASDAQ:FCNCA) from $2,100 to $2,050 while keeping a Neutral rating. The change is due to expected declines in net interest income (NII) and net interest margin (NIM) despite strong loan and deposit growth. A business executive confidently presenting a financial research report to a boardroom. Kevin Fitzsimmons, an analyst at DA Davidson noted that First Citizens could see more balance sheet and fee growth if capital markets activity increases. They may benefit from high interest rates due to its asset sensitivity. However, lower expected earnings per share (EPS) signal challenges. The stock has dropped 1% compared to the KRX index since the last earnings report, down 6% year-to-date, but gained 39% in 2024. DA Davidson also adjusted expectations for the bank's share buyback program, now anticipating First Citizens will reach its CET1 capital ratio target (10.5%-11%) by Q1 2026, slightly later than previously expected. The Neutral rating signals caution due to potential rate cuts and economic uncertainties, which could limit further stock growth. First Citizens BancShares, Inc. is the parent company of First-Citizens Bank & Trust, offering banking services in the U.S. and internationally. It provides individuals, businesses, and professionals with checking, savings, and loan options. The bank offers loans for construction, businesses, mortgages, and personal needs, along with wealth management services, including investment advice, trust management, and insurance. It also provides leasing and financing solutions for railcars and locomotives. Customers can access services online, via mobile apps, or at branch locations. While we acknowledge the potential of First Citizens BancShares, Inc. (NASDAQ:FCNCA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FCNCA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
The Star
09-05-2025
- Business
- The Star
Stock market upgrade expected by September
Regulatory push: A man walks past the Hanoi Stock Exchange. The government's determination to elevate the country's stock market is evident, with clear political will demonstrated in various regulatory meetings. — Reuters HANOI: Vietnam's stock market is on the brink of a significant transformation, with expectations mounting for an upgrade to emerging market status by September. This ambitious goal was emphasised at the regular government press conference on Tuesday by Deputy Finance Minister Tran Quoc Phuong, who noted that the government is committed to achieving this milestone through a series of strategic initiatives. The Finance Ministry (MoF) is actively implementing a comprehensive plan to enhance market capabilities and meet the stringent criteria set by international rating agencies such as FTSE Russell and MSCI. While Vietnam has largely satisfied the necessary technical criteria, challenges remain in gaining the confidence of foreign investors and ensuring a transparent and accessible investment environment. 'However, this is merely a necessary condition. 'The sufficient condition hinges on the remaining processes and foreign investors' assessments of investment activities within the Vietnamese stock market,' Phuong said. To address these challenges, the ministry has outlined six major strategic actions aimed at bolstering investor trust and facilitating the upgrade process. Key among these initiatives is the effective deployment of the KRX system, a new technology platform designed to improve trading efficiency and risk management for foreign investors. This system introduces advanced features for transaction processing and payment, streamlining the investment process. Additionally, recent regulatory changes have removed significant barriers by allowing foreign institutional investors to place buy orders without requiring full upfront funds. This reform is anticipated to enhance investment fluidity and attract more foreign capital. The MoF is also reviewing and amending Decree 155 to clarify the timelines for public companies to report their foreign ownership limits, thereby increasing transparency for market participants. Simplifying the procedures for opening indirect investment accounts is another focus, with the ministry collaborating with the State Bank of Vietnam to facilitate foreign capital inflows. Furthermore, the introduction of omnibus trading accounts for foreign funds is set to simplify transaction processes, allowing fund managers to execute trades on behalf of multiple portfolios simultaneously. This innovation aims to enhance operational efficiency for foreign institutional investors. In addition to regulatory reforms, the ministry is focused on increasing the supply of financial products and improving the listing process for companies after their initial public offerings. Developing new investment indices will also provide more benchmarks for fund managers, further enriching the investment landscape. To ensure ongoing dialogue between regulators and market participants, a policy dialogue group will be established, comprising representatives from the State Securities Commission, investment funds, and securities firms. This group will facilitate timely discussions on market needs and regulatory responses, a step many experts believe is crucial to making policy more responsive. Despite the progress made, Vietnam's path to achieving emerging market status is fraught with challenges. FTSE Russell's recent report classified Vietnam as a frontier market, citing concerns about payment systems and market accessibility. However, the introduction of non-pre-funding models for foreign investors has been recognised as a positive development, indicating that improvements are underway. The government's determination to elevate Vietnam's stock market is evident, with clear political will demonstrated in various regulatory meetings. As the September deadline approaches, the financial community is hopeful that these efforts will culminate in a successful upgrade, positioning Vietnam as a premier investment destination in the region. — Viet Nam News/ANN
The Star
05-05-2025
- Business
- The Star
Main Vietnam stock exchange launches long-awaited trading system
This picture taken on May 28, 2012 shows Vietnamese workers walking past the Stock Exchange building in Ho Chi Minh City. - AFP HANOI: Vietnam's Ho Chi Minh Stock Exchange officially launched its new trading system on Monday (May 5), as the country pushes to unlock emerging market status and boost foreign investment. The new system, known as KRX from Korea Exchange, is expected to shorten the settlement cycle and increase trading capacity, according to an earlier statement from the State Securities Commission. "The new system will establish the foundation for a central clearing counterparty system," said Nguyen The Minh, head of research at Yuanta Securities Vietnam. Both the MSCI and FTSE indices currently classify Vietnam as a frontier market, which prevents many funds, family offices, and others from investing in companies listed there. FTSE will hold its next regular review in September. Vietnam has been on FTSE's watchlist for a possible upgrade since 2018. Vietnam's benchmark stock index rose slightly on Monday morning, reaching 1,232 as of 0243 GMT. Last November, Vietnam removed a requirement for overseas investors to fully prefund equity trades, one of the longstanding barriers to its potential upgrade. The KRX had faced multiple delays due to regulatory and technical roadblocks. "KRX can enhance market liquidity and pave the way for the launch of other new financial products including day trading, short-selling and derivatives, which will better benefit investors," Minh said. According to Minh, the system has been functioning properly so far, but it may take investors some time to get accustomed to it. - Reuters
