JAPAN'S BROKERAGES SEE PROFITS DROP IN FY 2000.

TOKYO, May 1 Asia Pulse - The nation's 20 listed brokerages, which in fiscal 1999 racked up their highest profits since the end of the bubble economy, saw their pretax profits drop in fiscal 2000 due to a shrinking investment appetite and lower commissions.

Earnings were suppressed by the weak stock market, which kept individual investors away, and competition with online brokerages, which increased pressure to reduce commission rates.

Nomura Securities Co. (8604) and the other big brokerages suffered relatively smaller earnings declines, supported by proprietary stock trading and their investment banking businesses. But smaller brokerages, which rely heavily on individual investors, suffered, widening the earnings gap between big and small firms.

Average daily trading volume on the Tokyo Stock Exchange in fiscal 2000 was about 882 billion yen (US$7.16 billion) , down about 10 per cent from the year before.

Nomura's consolidated pretax profit slipped 5 per cent on the year to 302.1 billion yen. Commissions paid by individual investors plunged, but "the unwinding of corporate cross-shareholdings gave rise to slightly more than 50 billion yen in earnings in the full-year term," according to Kenichi Watanabe, executive director.

Group net profit increased. The firm will raise its yearly dividend payout to 17.5 yen from 15 yen in fiscal 1999.

Daiwa Securities Group Inc. (8601) saw large-lot transactions recover around the end of fiscal ...