Securities companies in Taiwan swing to profit in July
CNATAIPEI -- Securities companies operating in Taiwan turned a profit in July, helped by the local market's higher turnover during the month, the Taiwan Stock Exchange (TWSE) said Friday.
August 17, 2013, 12:04 am TWN
The TWSE said rising share prices in July encouraged investors to jump into the market, driving daily turnover higher and strengthening the bottom lines of securities firms operating in Taiwan.
In July, the market's benchmark weighted index rose 45.73 points, or about 1 percent, from a month earlier to 8,107.94, while average daily turnover rose 4 percent month-on-month to NT$84.4 billion(US$2.81 billion).
The 82 securities firms in Taiwan had a combined net profit of NT$3.29 billion in July, compared with a net loss of NT$383 million in June, according to TWSE statistics.
Among the 82 securities companies, 64 were profitable during the month and 18 suffered losses, the exchange said.
Of the 46 integrated securities companies, 38 were profitable and 8 incurred losses in July, while among the 35 dedicated brokerages, 26 finished in the black and nine lost money.
The only futures commission merchant in Taiwan — Yuanta Futures — reported a net loss of NT$36 million for the month.
Integrated securities firms are allowed to engage in a wide range of activities that include brokering trades, proprietary trading, and underwriting, while securities brokers can only trade equities.
In the integrated securities sector, Yuanta Securities was the most profitable firm in July, posting NT$630 million in net profit, ahead of KGI Securities (NT$541 million), Fubon Securities (NT$522 million), President Securities (NT$220 million), and SinoPac Securities (NT$214 million).
IBT Securities posted the biggest net loss among integrated securities firms in July at NT$117 million, followed by Primasia Securities, which had a net loss of NT$43 million, and Oriental Securities, which posted a net loss of NT$19 million.
Also posting net losses were Barclays Capital Securities Taiwan (net loss of NT$11 million), and Nomura International (Hong Kong), Taipei branch, (net loss of NT$9 million).
In the first seven months of 2013, the 82 securities companies posted NT$10.68 billion in net profit. KGI Securities led the pack with a net profit of more than NT$2 billion during the period.