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Securities companies' net profit falls over 50% in May

Securities companies' net profit falls over 50% in May

Taipei, June 15 (CNA) Securities companies operating in Taiwan suffered a more than 50 percent month-on-month decline in net profit for May in the wake of a drop in the weighted index on the main board and a decline in daily turnover, the Taiwan Stock Exchange (TWSE) said Monday. In May, the weighted index on the local main board fell 118.98 points or about 1.21 percent from a month earlier amid concerns over the high tech sector's bottom line for the second quarter, a traditional slow season for the industry. With cautious many investors taking to the sidelines, the average daily turnover for May fell 9 percent from a month earlier to NT$97.4 billion (US$3.24 billion), and lower trading volume cut stockbrokering fees of securities firms by 12 percent in the month, the TWSE said. As a result, the 78 securities firms registered in Taiwan posted about NT$1.8 billion in net profit in May, down 55.44 percent from a month earlier, the TWSE statistics showed. The data indicated that 47 of the 78 were profitable, while the remaining 31 incurred losses. Last month, the 45 integrated securities firms in Taiwan recorded NT$1.73 billion in net profit, down 55.27 percent from a month earlier with 30 profitable and 15 loss-incurring, the TWSE said. The data showed that Taiwan's 32 dedicated securities brokers registered NT$67.60 million in net profit in May, down 59.36 percent from a month ago with half of them profitable. The only futures commission merchant in Taiwan -- Yuanta Futures - posted NT$848,000 in net profit for May, down 48.42 percent month-on-month, according to the TWSE. In Taiwan, integrated securities firms are allowed to engage in a wide range of activities that include brokering trades, proprietary trading and underwriting, while dedicated securities brokers can only broker and trade equities. In the first five months of this year, aggregate net profit posted by the 78 securities companies in Taiwan totaled NT$14.2 billion, up 8 percent from a year earlier with 55 of them profitable and 23 incurring losses, the TWSE said. The exchange said that the increase in net profit largely resulted from securities firms' overseas investments. (By Tien Yu-pin and Frances Huang)


Updated : 2021-09-19 20:27 GMT+08:00