Equity investors in Taiwan earned about NT$1 million (US$35,224) on average in the past lunar year, boosted by a 30 percent rise in share prices, Taiwan Stock Exchange data showed.
On Friday, the last trading session in the Year of the Rat, the benchmark index closed at 15,802.40, which is 3,683.69 points, or 30.4 percent, higher than in the last session in the previous lunar year, the Year of the Pig.
Market capitalization increased by NT$11.37 trillion, or 30.92 percent, from a year earlier to NT$48.16 trillion.
Photo: CNA
As of the end of last month, there were 11.28 million investors on the equity market, earning about NT$1.1 million on average in the 12-month period, the data showed.
Despite the COVID-19 pandemic, global financial markets remained resilient, as the US Federal Reserve and other major central banks pumped cash into economies, analysts said.
The spillover effects of loose monetary policies led to strong and sustained fund inflows into Taiwan, they said.
The TAIEX on Jan. 7 surpassed 15,000 points, peaked at 16,153.77 points on Jan. 21 and finished at 15,802.40 on Friday.
The gains were driven largely by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which soared almost 90 percent in the Year of the Rat.
TSMC remained the global leader in high-end technology development, weathering headwinds from the pandemic, analysts said.
TSMC reallocated capacity after it lost orders from one of its major customers, Huawei Technologies Co (華為), due to US sanctions on the Chinese firm, they said.
In the Year of the Rat, TSMC’s market cap rose by NT$7.75 trillion to NT$16.38 trillion, as its shares soared by NT$299.00. Its shareholders earned NT$309,000 for every 1,000 shares, in addition to a cash dividend of NT$10 per share.
TSMC’s gains contributed 2,546 points to the TAIEX’s increase in the past lunar year.
The chipmaker remained the most profitable company in Taiwan, posting a record net profit of NT$517.89 billion, or earnings per share of NT$19.97.
TSMC has forecast a 15 percent sales increase this year, while the average growth in the pure-play wafer foundry industry is projected to be 10 percent.
Among the other companies that contributed significantly to the TAIEX’s gains, integrated circuit designer MediaTek Inc (聯發科) posted NT$41.44 billion in net profit, an annual gain of 78.6 percent, driven by increased shipments of 5G chips.
In the Year of the Rat, MediaTek shares soared NT$531 from a year earlier to close at NT$950, with its market cap increasing by NT$844.29 billion. Its shareholders earned NT$541,500 for every 1,000 shares, in addition to a cash dividend of NT$10.5 per share.
Trading on the local equity market is to resume on Wednesday next week.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
RSS