A boom in the domestic stock market this year is expected to deliver strong first-quarter results for major brokerages. With both the KOSPI·KOSDAQ indexes climbing sharply, retail investors have flocked into equities even amid sharp swings this month. As strong results are anticipated, brokerages are actively increasing shareholder returns, including dividends.

According to the financial information firm Yonhap Infomax and others on the 15th, the combined first-quarter operating profit forecast on a consolidated basis for five large brokerages (Mirae Asset Securities·Korea Financial Holdings (parent company of Korea Investment & Securities)·Samsung Securities·NH Investment & Securities·Kiwoom Securities) amounts to 3.0279 trillion won.

That is an increase of 65.92% from the same period a year earlier. Revenue is projected at 4.1591 trillion won, and net income at 2.3122 trillion won, estimated to have risen 46.62% and 64.02%, respectively, over the same period.

By firm, Mirae Asset Securities' first-quarter operating profit is expected to be 978.2 billion won, up 182.56% from a year earlier; Korea Financial Holdings, 705.9 billion won, up 33.3%. Samsung Securities is projected at 418.9 billion won, up 25.22%; NH Investment & Securities, 427.2 billion won, up 47.82%; and Kiwoom Securities, 497.7 billion won, up 52.9%.

The upbeat outlook for brokerages in the first quarter largely reflects a substantial increase in trading on the domestic stock market during this period. Through February, the KOSPI·KOSDAQ moved sharply, led by large-cap stocks, and as indexes whipsawed this month, trading surged. From the start of the year through the 13th, the combined average daily trading value of the main board and the KOSDAQ was 45.297 trillion won, more than double the level in the first quarter of last year (18.336 trillion won).

On the 4th, trading value even reached 79.47 trillion won. Individuals have purchased 8.918 trillion won worth of domestic stocks and more than 27 trillion won in exchange-traded funds (ETFs) this year, investing heavily in the market with a focus on ETFs.

With strong results expected and regular general meetings of shareholders approaching, shareholder-return moves are strengthening, and brokerages are increasing dividend payouts. Mirae Asset Securities decided last month to carry out shareholder returns of about 635.4 billion won, including a 465.3 billion won dividend. Korea Investment & Securities will pay a cash dividend of 620 billion won; Samsung Securities, 357.2 billion won; NH Investment & Securities, 487.8 billion won; and Kiwoom Securities, 301.3 billion won.