Internet stock trading set a number of new records last month, including records for trading volume, market share penetration and the number of new investors who have opened on-line stock accounts.
Analysts said the fast growth of Web trading would inevitably force the securities industry into a massive period of merger activity next year.
Internet stock trading volume grew a hefty 37.9 percent last month to NT$159.3 billion, or 3.2 percent of total market turnover. In addition, it was the first time Internet stock volume topped 3 percent, according to the Taiwan Stock Exchange.
Internet trading volume in October was 2.79 percent of total market turnover, or NT$115.5 billion. Three months ago, the figure was just 2.1 percent.
More than 83,000 new investors opened Web brokerage accounts last month, the largest ever increase in a single month.
Analysts attributed the fast growth of Web trading to the "free computer" programs offered by dozens of securities firms since September, when President Securities launched its first Internet trading package. Now, there are as many as 59 firms that offer Internet trading services, out of 200 companies overall.
Polaris Securities (
The market share of Core Pacific (
In addition, Yuanta signed up 14,000 new Internet investors last month, putting it in the No. 1 spot compared to other firms that offer "free computer" programs.
Since October last year, when Internet trading was first launched, Polaris Securities has signed up 127,000 Internet investors. Core Pacific followed with 51,000 customers. Yuanta, MasterLink (
With many new players entering the Internet trading market, the top 15 players have reshuffled significantly.
President Securities moved up to No. 14 last month after it attracted more than 25,000 new investors.
Another newcomer has been Net Broker Securities (3
"This broker is the first of its kind and it's run by computer companies," said K. P. Liu (劉3穸-), president of SinoPro Securities Investment Consulting. "If it's successful in the next few months, it is likely that other computer companies will follow and further threaten the survival of hundreds of traditional brokerages, who can not keep up with the pace of the Internet."
Industry analysts said the percentage of Internet trading three months ago was just 2 percent and nothing about a year ago. If the rate of growth continues its present pace, Internet trading could top 10 percent of total turnover volume before the end of next year.
If that time comes, dozens of smaller brokerages that cannot provide similar services as large securities firms could be forced to leave the market or merge with bigger companies.
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