The 7 midsize and second-tier securities firms posted lower net income, while trading performance was weak. Market conditions deteriorated under the influence of higher Japanese and U.S. interest rates and movements in AI-related stocks.
Among the second-quarter results announced by 9 midsize and second-tier securities firms by the end of October, 7 reported lower profits, and profit margins in their trading divisions declined.
Higher Japanese and U.S. interest rates and a correction in AI-related stocks were cited as factors behind the deterioration in market conditions, affecting overall performance.