Seven out of the nation's eight midsize brokers, affected by the slumping stock market, logged group net losses in the first three quarters of fiscal 2001.
The firms said the slump devastated their sales commission income from stock brokerages and investment trust funds in the April-December period.
Group net losses exceeded 10 billion yen each at Shinko Securities Co., Mizuho Investors Securities Co. and Tokai Tokyo Securities Co.
Sakura Friend Securities Co. reported a marginal profit.
With individual investors' appetite for stocks dwindling, stock brokerage commissions plunged by 27 percent to 50 percent year on year at Tsubasa Securities Co., Shinko, and Kokusai Securities Co. Tsubasa's earnings are comparable with year-before figures. Investment trust fund sales commissions fell by between 38 percent and 73 percent.
The hard times are expected to continue at midsize brokers, with individual investors -- their core client base -- being lured away by Internet brokers, which offer cheap commissions.
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