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[Alpha Biz=(Chicago) Reporter Kim Jisun] Meritz Financial Group jumped more than 6% on the back of its decision to buy back its shares worth 240 billion won.
The total market capitalization also increased by 2.5 trillion won in just five months after the merger of Meritz Securities and Fire, reaching a total of 12 trillion won.
According to the Korea Exchange on the 22nd, Meritz Financial Group closed at 57,400 won, up 6.30% from the previous trading day. This is the highest ever, up 38% this year alone. The total market capitalization also rose sharply to 11.9517 trillion won on the same day from 9.4947 trillion won on April 25, when Meritz Securities and Meritz Fire & Marine Insurance were merged.
Compared to the four major banks' financial holdings, the company widened the gap with fourth-ranked Woori Financial Group (9.5295 trillion won) to more than 2 trillion won and narrowed the gap with third-ranked Hana Financial Group (12.98 trillion won) to around 1 trillion won.
Meritz Financial Group's surge on the same day is attributed to the company's announcement that it signed an equity stock acquisition trust contract worth 240 billion won the previous day. Last year, Meritz Financial Group announced that it would significantly increase its shareholder return rate from fiscal 2023 ahead of the launch of the integrated holding company.
According to Shinhan Investment & Securities, Meritz Financial Group bought treasury stocks worth about 1.7 trillion won over the past three years, including Meritz Fire & Marine Insurance and Securities, before the merger.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
