Securities companies’ net profit falls over 50% in May
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.