The nation’s securities account balance last month plunged NT$137.3 billion (US$4.26 billion) to NT$3.3 trillion, from a record high of NT$3.51 trillion in March, as fast and deep TAIEX corrections took a toll on investment sentiment, the central bank said on Friday.
The benchmark saw sharp retreats in the middle of last month after Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest maker of advanced chips, gave a lackluster outlook for global chip demand this year, but stood by its own earnings ability.
The remarks set off panic sell-offs and capital outflows in the following days, as tech analysts had forecast TSMC would raise capital expenditures on the back of strong demand from artificial intelligence (AI) and other emerging technologies.
Photo: CNA
Further, brief military conflicts between Iran and Israel stirred up unease that the war in the Gaza Strip would escalate and spread across the Middle East, central bank research official Tsao Ti-jen (曹體仁) told a news conference in Taipei.
The stock rout reversed toward the end of last month after several US technology giants during earnings calls said they would increase their AI investments, although the spending might not bear fruit in the near future.
The TAIEX on Friday closed down 0.19 percent to 21,565.34 points, significantly different from 19,527.12 on April 19, the day after TSMC investors’ conference, Taiwan Stock Exchange data showed.
The central bank’s latest data reflected that stock market sentiment remained bullish in the first four months of the year, as the TAIEX averaged 20,245 last month, up from 19,843 points in March, 18,612 points in February and 17,668 points in January.
In addition, the balance of margin loans spiked to NT$384.2 billion last month, up from NT$379 billion the previous month and hitting the highest level since February 2011, the central bank said.
New Taiwan dollar deposits by foreigners rose 12.19 percent to NT$220.9 billion last month, as some opted to park money in Taiwan, Tsao said, adding that cash dividends helped boost the balance.
Against that backdrop, the annual growth in the narrow money supply measure of M1B — which refers to money in circulation, including currency and passbook savings deposits — slowed to 4.94 percent last month, from 5.38 percent in March, the central bank said.
Likewise, the increase in the broad reading of M2 — which includes time deposits, time-saving deposits, foreign currency deposits, mutual funds and M1B — eased to 6.06 percent from 6.15 percent the previous month, it said.
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