Securities companies in Taiwan suffered an almost 60 percent month-on-month decline in their total net profits last month due to falling share prices and slipping turnover, the Taiwan Stock Exchange (TWSE, 台灣證券交易所) said on Monday.
According to TWSE data, the total net profits posted by 81 local securities companies fell 57.98 percent from October to NT$1.25 billion (US$42.06 million) as the benchmark TAIEX fell 2.53 percent during the same period.
Turnover on the local bourse fell 11 percent month-on-month, further impacting security firms’ profitability. Thirty of the businesses incurred losses, while the remaining 51 were profitable, the figures showed.
Of 46 integrated securities firms, 32 posted profits and 14 suffered losses, while 18 of 34 dedicated brokerages were profitable and 16 incurred losses, the exchange said.
Integrated securities firms can engage in a wide range of activities that include brokering trades, proprietary trading and underwriting, while dedicated securities brokers can only trade equities.
Yuanta Futures Co (元大期貨), the only futures commission merchant in the nation, reported a net profit for last month.
In the first 11 months of the year, the 81 securities companies enjoyed an overall 10.39 percent year-on-year increase in net profit at NT$18.22 billion, the TWSE said.
The number means that, excluding one-time gains in the sector during the first 11 months last year that came from property disposal, the 81 securities firms posted a 36.73 percent year-on-year increase in net profit.
In the period from January through last month, the average earnings per share of the firms hit NT$0.506, while their average return on equity stood at 3.59 percent, the TWSE said.
Meanwhile, Ernst & Young said on Monday that the improving global economy means more foreign companies are expected to launch initial public offerings on the TWSE’s main board and on the over-the-counter market next year.
The accounting firm said that the number of initial public offerings on the local bourse rose 45 percent annually, while fundraising from market listings this year grew 27 percent from a year earlier.