Brokerage firm Sico announces net loss of BD91,000 for first half of 2000

Published August 30th, 2000 - 03:00 GMT

The securities and investment company, Sico, recently announced a net loss of BD91,000 for the first half of 2000 — compared with a gain of BD314,000 in the corresponding period last year.

Realized and unrealized losses in investment and trading portfolios, amounting to BD276,000, were the main cause for the company's first half-year net loss, reported the Gulf Daily News.

Despite an 18 percent rise in revenues, the company's operating expenses sharply rose nearly four-fold to BD369,000, mainly as a result of the implementation of its new business plan.

Financial results of brokerage firms are highly influenced by those of the its regional stock market. The Bahrain Stock Exchange (BSE) poorly performed in the first half of this year — with a 12.3 percent loss in its index—partially accounting for Sico's financial underachievement.

Sico, however, remains the leading brokerage firm in Bahrain, with a 29 percent brokerage volume on the BSE — up from last year’s 23 percent figure.

The company's new business plan focuses on diversifying revenue sources into investment banking services — with an emphasis on developing and managing new regional funds with investments in the Arab markets. The new plan entails a heavy capital expenditure, mainly to expand and upgrade the company’s information technology systems. — (Albawaba-MEBG)