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.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s