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Friday, November 26, 2010

Listed securities company's revenue dropped: Intensity of local investor trading slowed

Irvin Avriano A.
Bisnis Indonesia

Listed securities company's revenue dropped: Intensity of local investor trading slowed

JAKARTA: The capital market vibrant condition has not been able to move the majority of the commission income of securities company which revenue declining during the 3rd quarter/2010, compared to the same position in the 3rd quarter/2009.

It was considered as the result of the declining of local investor interest to trading in local capital market.

The brokerage commissions that also affects the declining revenue because the account usually became the largest revenue contributor.

Financial reports from eight securities that have been published shows, from exactly nine listed company, indicate as many as five securities which experienced a declining brokerage commission that recorded on their September financial statement. The decline occurred as compared to the same period last year.

The amount is inversely to the three issuers from the same sector which posted an increasing brokerage commissions.

The first securities which revenue declining is PT HD Capital Tbk which decreased by 47.78% from IDR27.82 billion in the 3rd quarter/2009 to IDR14.53 billion per 3rd quarter/2010.

Under HD Capital are PT Yulie Sekurindo Tbk with a decrease of 41.39% from IDR1.94 billion to IDR1.13 billion, PT Majapahit Securities Tbk dropped by 39.84% from IDR6.55 billion to IDR3.94 billion.

Then there PT Trimegah Securities Tbk amounted to 21.41% from IDR68.01 billion to IDR53.44 billion. The latter is PT JJ NAB Capital Tbk, which dropped by 5.16% from IDR2.87 billion in the September 2009 to IDR2.71 billion per September 2010.

However, the decline of JJ NAB Capital's brokerage revenues covered by increasing of other revenue. Company's margin financing increased by 739.38% from IDR6.23 million to IDR52.37 million and the dividend income amounting to IDR32.93 million, from last year's year position that does not booked yet.

As a result, almost all issuers of securities are also posted a decline in revenue, except JJ NAB. However, JJ NAB still posted an increase in net loss of 4.57% from IDR1.39 billion to IDR1.45 billion.

Performance of positive brokerage commissions are recorded by the PT Panca Global Securities Tbk amounting to 38.78% from IDR5.08 billion to IDR7.05 billion and PT Reliance Securities Tbk, posted an increase of 4.97% from IDR23.93 billion to IDR25.12 billion.

Then there are PT Panin Sekuritas Tbk's broker commissions that increased by 6.65% from IDR29.4 billion to IDR31.35 billion.

HD Capital President Director Anthony Kristanto said the ocurred declining in the company are due to reduction in trade transaction in the market, precisely when the market shows a positive move this year.

"Most of our customers, majority the local one, eventually switching to invest with a medium term investment horizon and reduce the frequency of their trades, or take a margin facility for those who want to do trading," he said when contacted yesterday.

He said the transactions that occurred this year in the capital market is supported by foreign investors that investment volume is much larger than the local investors and assisted by foreign brokerage house.

Although his company's majority of investors doing fewer transactions, he said there are some other investors who make transactions more in margin contract than last year because market conditions had improved.

Panin Sekuritas Corporate Secretary Prama Nugraha said the company booked more revenue from its investment portfolio, and an increase in securities transactions in the company.

Panin's increased revenues occur at 52.86% to IDR283.06 billion, in which the instruments supporting the biggest increase is the commission the investment manager that been increased by 129.18% to a level of IDR38.38 billion.

The company also recorded the highest net profit margin among other issuer that is equal to 71.38% per quarter III/2010, a thin or decreased by only 2.08% compared with a margin of 72.89% III/2009 quarter.

"The decline was not significant because we're already have a big net profit margin," said Prama.

The company, he said, also has exceeded revenue target this year that pegged at 20% of revenues last year amounted to IDR149 billion.

Prama also said the value of transactions via the company also has penetrated the level of around IDR18 trillion, compared to the same period last year amounted to around IDR17 trillion.



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