Local brokerages' earnings tumble in August

By Nam Kwang-sik
SEOUL, Sept. 20 (Yonhap) -- Local securities firms saw their earnings fall nearly two-fold on-year in August due to lower commission incomes stemming from the bearish market and investment losses, industrial sources said.

Nine brokerages, including Daewoo Securities Co., posted a combined 10 billion won (US$8.8million) in operating profits for August, down 94.3 percent from a year ago, with net profits falling 91.9 percent to 15.3 billion won, the sources said.

Four brokerages -- Daewoo Securities, Hyundai Securities Co., Tong Yang
Securities Inc. and Hanwha Securities Co. -- posted operating losses for August
compared with one year ago.
Operating profits for Korea Investment Securities Co. and Samsung Securities Co.
plunged 60 percent year-on-year in the month.
"Daewoo Securities' earnings were hurt by a loss of 17.2 billion from its
investments in bonds, while decreased commission incomes ate into other
brokerages' earnings," said Kang Seung-geon, an analyst at Daeshin Securities Co.

While the benchmark Korea Composite Stock Price Index (KOSPI) fell 7.55 percent,
the amount of stock transactions tumbled over 40 percent to 76.7 trillion won in
August from a year ago, according to data released by South Korean stock operator
Korea Exchange.
Market watchers predicted that it will take some time for brokerages to improve
their earnings as uncertainties remain in the market.
ksnam@yna.co.kr
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