Share Buyback Obligation Sparks New Hopes in ETF Market
The proposed legal amendments to mandate share buybacks are anticipated to stimulate a revaluation of corporate value and an increase in stock value. Experts from Mirae Asset Management project that these changes are likely to enhance the performance of ETFs such as 'TIGER Holding Companies' and 'TIGER Securities'. The Holding Companies ETF is particularly noteworthy for its low Price-to-Book Ratio (PBR), which makes it attractive for investors seeking re-rating opportunities.
Meanwhile, the Securities ETF is expected to benefit from the impact of share buybacks and the revitalization of venture investments, leading to improved profitability for securities companies. Additionally, companies with high shareholding ratios are likely to see an increase in Earnings Per Share (EPS), providing a direct boost to stock prices. Improvements in share buyback and dividend policies of major companies such as Samsung Electronics and Hyundai Motor are also significant changes identified. Consequently, there is an anticipated rise in interest in high-dividend ETFs, along with a positive overall market sentiment.
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'Mandatory Share Buyback Cancellation' Beneficiary Holding Company Stocks, Undervaluation Appeal Remains Attractive - EdailyThe valuation appeal of holding companies expected to benefit from mandatory share buyback cancellations remains attractive." Jeong Heon, head of ETF operations at Mirae Asset Management, mentioned this in a webinar on the 26th. On the 26th, a dealer is working at the dealing room of Hana Bank's main branch in Jung-gu, Seoul. (Photo=Yonhap News) Originally, share buybacks...