Listed brokerage houses' cumulative first-quarter net profit dived 76.21 per cent year on year, from Bt1.03 billion to about Bt245 million, on sharp declines in stock trading.

The results did not take into account Capital Nomura Securities' earnings, as its fiscal year differs from that of other brokers.

Average daily trading in securities for the first three months declined 42.83 per cent, from Bt20.99 billion to Bt12 billion.

All brokers saw their quarterly net profits decline.

United Securities, a small brokerage house, posted the biggest decline, almost 300 per cent, from a profit of Bt7.86 million to a loss of Bt15.69 million, Stock Exchange of Thailand (SET) data showed.

Syrus Securities had a loss of Bt17.09 million, down 290 per cent from its profit of Bt8.96 million in the same period last year.

Sicco Securities also plunged to a loss of Bt17.10 million, down from a profit of Bt17.38 million.

Bualuang Securities had the smallest decline in the industry, falling 41 per cent to Bt37.64 million. Its brokerage fees from securities dropped 49 per cent to Bt105.57 million. However, this was partially offset by fees of Bt8.57 million from the derivatives business, an increase in fee and service income, interest and dividend income and interest on margin loans.

Phatra Securities' profit fell nearly 43 per cent, while Asia Plus Securities' profit slid more than 50 per cent.

Phatra Securities' brokerage fees from securities decreased 49.86 per cent, from Bt421.21 million to Bt211.2 million. However, its brokerage fees remained its largest source of income, accounting for 64 per cent. Its market share in the brokerage business fell from 6.04 per cent to 5.76 per cent.

Kim Eng Securities (Thailand) saw its profit drop 69.68 per cent, from Bt216.11 million to Bt65.52 million.

The Kingdom's largest broker by stock-trading volume said in a filing with the SET that its brokerage fees from securities in the first quarter slumped nearly 58 per cent to Bt246.81 million.

The sharp decline in brokerage fees could be ascribed to a decline in stock trading, from Bt3.91 billion to Bt1.72 billion.

An 80-per-cent fall in fee and service income due to a drop in its financial advisory and underwriting business was another cause of the company's profit decline.

Seamico Securities has underweight investment in brokers' stocks, given the relatively low trading volume resulting from the economic slow-down and the absence of positive factors.

The research house also lowered its forecast for average daily trading this year from Bt16 billion to Bt14 billion after the first-quarter figure was lower than its original estimate.

Siriporn Chanjindamanee

The Nation