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Securities firms incur losses in April on falling local bourse

2012/05/16 20:22:51

Taipei, May 16 (CNA) Securities companies operating in Taiwan incurred losses in April, as the local bourse came under pressure amid concerns over a possible capital gains tax and the European debt crisis, the Taiwan Stock Exchange (TWSE) said Wednesday.

The TWSE said 84 securities firms operating in Taiwan posted NT$263 million (US$8.89 million) in net loss for April, compared with NT$1.75 billion in net profit recorded in March.

In April, the weighted index fell more than 430 points or about 5.44 percent from a month earlier, squeezing the bottom line of the local securities industry.

Among the 47 integrated securities firms, 15 posted earnings, and 32 incurred losses, the exchange said.

Meanwhile, 11 of the 36 dedicated brokerages reported profits and 25 recorded losses, it added.

The only futures commission merchant in Taiwan -- Polaris Futures -- registered NT$33,000 in net loss last month, the TWSE said.

Integrated securities firms are allowed to engage in a wide range of activities that include brokering trade, proprietary trading and underwriting, while securities brokers can only trade equities.

In the integrated securities firm segment, Grand Cathay Securities topped the list in the loss margin, posting NT$336.03 million in net loss. Next in line were Concord International Securities with NT$99.76 million in net loss, Oriental Securities with NT$96.13 million, Horizon Securities with NT$75.13 million and Grand Fortune Securities with NT$70.60 million.

Meanwhile, Yuanta Securities ranked the most profitable among the integrated securities firms, posting NT$767.72 million in net profit, ahead of SinoPac Securities with NT$78.39 million, Jih Sun Securities with 48.91 million, KGI Securities with 48.49 million and Goldman Sachs with NT$44.24 million.

In the first four months of this year, the 84 securities firms posted NT$8.71 billion in net profit, according to the TWSE.

(By Tien Yu-pin and Frances Huang)
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