Market participants are paying keen attention to the future course of bank stocks as they have been showing a solid rebound from the COVID-19 crisis in line with the stock market recovery.

Bank stocks, although they saw a setback Thursday, have been experiencing a bullish run, as the financial market appears to be on track for a stable recovery with uncertainties surrounding the coronavirus pandemic diminishing here and abroad.

Shares of Shinhan Financial Group, the nation’s largest financial holding firm by market capitalization, rose to 35,750 won ($29.38) Wednesday, up 11 percent from the previous trading day, on signs of economic recovery and the subsiding pandemic spread.

The stock price KB Financial Group inched up to 38,600 won, a gain of 6.5 percent from a day ago. Shares of Woori Financial Group and Hana Financial Group were also on the rise.

Of note is that shares of not just the commercial lenders but state-run banks also enjoyed growth. The stock of Industrial Bank of Korea closed at 9,730 won, up 8.11 percent from the previous day.

Local economists predicted most banking stocks would continue on a stable track for recovery in the latter half of 2020.

“Banking stocks will maintain favorable fundamentals in the second half of the year, rather than expanding concerns,” Yuanta Securities economist Park Jin-hyoeng said.

The analyst argued that major bank stocks are expected to gain momentum for growth for more quarters to come, as their valuation has steeply declined for the past few months due to the virus shock.

“We believe bank stocks have enough room for growth in consideration of their profit-making capability and attractive dividend distribution,” he said. “In particular, bank stocks will be able to achieve bigger-than-expected growth than other industries in the case of a mass buying spree of foreign investors.”

The Bank of Korea (BOK)’s recent key interest rate cut also boded well for stock growth in the banking industry, according to Korea Investment & Securities.

Last week, the central bank cut the benchmark rate by 25 basis points to 0.5 percent. The brokerage house analyzed banks cleared away a series of risk factors surrounding the rate cut after the BOK’s decision.