Taipei, July 18 (CNA) Securities companies operating in Taiwan saw their net profit for June fall more than 70 percent from a month earlier, reflecting of a decline in share prices and a shrinkage in daily turnover, according to the Taiwan Stock Exchange (TWSE). In June, the weighted index on the local main board fell 378.05 points, or 3.9 percent, from the end of May amid concerns over Greek debt and fears that a slowdown in the global high-tech sector would hurt the local electronics sector's bottom line, analysts said. Worries over an interest rate hike cycle to be launched by the U.S. Federal Reserve later in the year also turned many investors away from the trading floor, analysts added. Last month, the average daily turnover on the main board fell 1.95 percent from a month earlier to NT$95.5 billion (US$3.05 billion). The TWSE said the net profit of 78 brokerages operating in Taiwan plunged 72.11 percent month-on-month to NT$500.66 million, with 38 turning a profit and the remaining 40 incurring losses. The exchange said Taiwan's 45 integrated securities companies posted a combined net profit of NT$385.83 million in June, down 77.65 percent from May. The TWSE data showed that 21 of the 45 were profitable but 24 others suffered losses. Taiwan's 32 dedicated securities brokers, however, saw their net profit rise 82.97 percent from a month earlier to NT$123.68 million, the exchange said. Among the 32 dedicated securities firms, 17 were profitable and 15 lost money during the month, the exchange added. The TWSE data showed that the only futures commission merchant in Taiwan -- Yuanta Futures -- posted a net loss of NT$8.85 million in June, compared with NT$848,000 in net profit recorded in May. In Taiwan, integrated securities firms are allowed to engage in a wide range of activities that include brokering trades, proprietary trading and underwriting, while dedicated securities brokers can only broker and trade equities. In the first six months of this year, Taiwan's 78 securities companies posted a net profit of NT$14.68 billion, down 13 percent from a year earlier, with 53 making money and 25 losing money, the TWSE said. In the first half of the year, the average daily turnover fell 5 percent from a year earlier to NT$88.3 billion, according to the TWSE. (By Tien Yu-pin and Frances Huang) enditem/ls
According to CNA (TWSE), securities companies operating in Taiwan have seen their net profit fall over 70% in June due to a decline in share prices and a shrinkage in daily turnover. However, Taiwan's 32 dedicated securities brokers saw their net profit rise 82.97%.