Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was the top pick on the investment list of the National Stabilization Fund (國安基金), the fund’s management committee said yesterday.
From March 20 to Oct. 12 last year, the state-owned fund injected NT$757 million (US$26.6 million) into the local stock market to shore up investor confidence amid the COVID-19 pandemic.
During the period, the fund spent NT$168 million on shares of TSMC, accounting for more than 22 percent of the total investment, the committee said.
The fund made NT$121 million in net profit from its investment in TSMC, plus NT$3.25 million in cash dividends from the chipmaker, representing a return of more than 70 percent.
The fund only bought shares in the final days of March, and did not make any investments in the second or third quarters, although it stayed in the market for 207 days.
After selling the shares it had bought during this period and withdrawing from the market, it made NT$258 million in net profit, or about a 30 percent return, the committee said.
During the fund’s presence, the TAIEX soared 4,274.57 points, or 49.24 percent, from a low of 8,681.34 on March 19 to close at 12,955.91 on Oct. 12.
In addition to TSMC, the stabilization fund bought 18 other stocks, including metal casing supplier Catcher Technology Corp (可成科技), contract notebook computer maker Quanta Computer Inc (廣達電腦) and iPhone assembler Hon Hai Precision Industry Co (鴻海精密), the committee said.
Its investment list also included Fubon Financial Holding Co (富邦金控), Cathay Financial Holding Co (國泰金控), E.Sun Financial Holding Co (玉山金控), Yuanta Financial Holding Co (元大金控), CTBC Financial Holding Co (中信金控), Mega Financial Holding Co (兆豐金控) and First Financial Holding Co (第一金控), it said.
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