Securities brokers posted NT$3.23 billion (US$106.32 million) in aggregate income last month, which was more than double their earnings in January, as the TAIEX gained 2.09 percent, boosting equity trade and profit, the Taiwan Stock Exchange Corp (TWSE, 台灣證券交易所) said.
Of the 81 securities firms, 59 recorded profits and 22 incurred losses last month, the TWSE said, as daily stock turnover remained above NT$100 billion at NT$121.1 billion per day.
Yuanta Securities Co (元大證券), the nation’s largest securities firm by market share, earned NT$428.73 million in net income last month, rising 11.29 percent from NT$385.23 million in January, the company said on its Web site.
Fubon Securities Co (富邦證券) and Cathay Securities Co (國泰證券) reported NT$261 million and NT$49.98 million in net profit last month respectively. This was more than double their earnings of NT$106 million and NT$20 billion in January due to increased brokerage, underwriting and proprietary trading business, the securities companies said last week.
Full-service securities firms generated NT$3.14 billion in profit, accounting for 97.34 percent of the sector’s income, TWSE said, with pure brokerages dividing the remaining NT$85.29 million.
Together, the securities firms achieved NT$0.1 in earnings per share last month, TWSE added.
The sector is likely to benefit from further deregulation, as the Financial Supervisory Commission plans to expand the scope of day trading — from a current 200 stocks to all shares later this month.
Commission Chairman William Tseng (曾銘宗) said on Wednesday last week that it is studying the desirability of the easing and may reach a decision either this week or by the end of this month.
Mutual funds also fared better last month amid improving risk appetite.
Fund sales picked up 4.5 percent last month to NT$2 trillion, the highest since August last year, according to the Securities Investment Trust and Consulting Association (證券投信投顧公會).
Currency funds increased by NT$63.5 billion, while equity funds grew by NT$18.6 billion, the association reported on its Web site.
The figures fell in line with a recent survey by Schroder Investment Management Taiwan that showed more Taiwanese are positive about local shares, rising to 55 percent this year from 36 percent last year.
While Taiwanese are increasingly optimistic about investment, they appear impatient about returns, most aiming to make a profit in 2.8 years, which is shorter than their Asian peers at 3.4 years and global counterparts at four years, Schroder Taiwan CEO Francine Wu (巫慧燕) said.
On average, Taiwanese hold investments for 2.9 years, with 57 percent opting to redeem them within two years.
Only 3 percent retained their investments for longer than a decade, Schroder said.
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