Se­cu­ri­ties com­pa­nies’ net profit falls over 50% in May

The China Post - - LOCAL -

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.

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