Following the closure of its intervention in the local stock market in mid-April, Taiwan’s National Financial Stabilization Fund reported that it had pocketed more than NT$6 billion (US$186 billion) in profit from its investments as of the end of last month, the Ministry of Finance (MOF) said yesterday.
The stabilization fund, which aims to mitigate market volatility, released the updated financial results in a fund committee meeting held earlier yesterday.
The committee said it had sold about 60 percent of the stocks bought during the intervention period that started on July 13 last year and ended on April 13 this year, and had posted a total of NT$5.33 billion in gains and received about NT$1.35 billion in cash dividends from its investments.
Photo: CNA
Net income as of the end of last month stood at NT$6.18 billion with a return rate of 19.63 percent, according to the ministry.
That intervention, the eighth ever, marked the stabilization fund’s longest market presence, a total of 275 days, including 181 trading sessions.
The intervention came after the TAIEX dipped below 14,000 points on July 12 last year amid escalating fears over rising interest rates in the US which were sending global financial markets into a tailspin.
During the intervention, the stabilization fund injected about NT$54.51 billion into the market to bolster share prices, the third-highest injection ever by the fund, the ministry said.
During that time, the TAIEX rose 13.29 percent, outperforming many foreign counterparts, it said.
Since the withdrawal from the local stock market, the TAIEX has risen 867.27 points, or 5.49 percent, ending at 16,672.03 yesterday, indicating that local shares have stayed stable despite the stabilization fund not currently intervening, the ministry said.
With Taiwan’s exports returning to a growth pattern last month, solid domestic demand and government measures to encourage investment, the local stock market is expected to stay stable, it said.
However, the ministry warned of the potential negative impacts of geopolitical risks and high inflation in the global markets, saying that the stabilization fund would continue to monitor the stock market closely and would make a prompt response if necessary.
The government set up the NT$500 billion stabilization fund in 2000 to serve as a buffer against unexpected external factors that might disrupt the local bourse.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS