Mon, Oct 06, 2014 - Page 14 News List

Net foreign fund outflow reaches US$3 billion: FSC

Staff writer, with CNA

The nation’s net foreign fund outflow hit about US$3 billion last month, when the local bourse took a beating because of large foreign institutional sell-offs, according to the Financial Supervisory Commission (FSC).

The commission said that foreign investors registered a net fund outflow of US$3.02 billion last month, when they served as net sellers of NT$58.98 billion (US$1.94 billion) worth of local shares on the main board.

EYES ON THE US

Market analysts said that foreign investors moved more of their funds out of the region to buy into US dollar assets, betting on further appreciation of the greenback by taking into account hopes that the US Federal Reserve could begin an interest rate hike cycle in the middle of next year.

Amid large foreign institutional selling, the TAIEX fell almost 5 percent last month.

CONSOLIDATION

The local bourse continued to move in consolidation mode in the first two trading sessions of this month before making a strong technical rebound on Friday, when the TAIEX closed up 1.46 percent on 9,106.28 points.

In August, foreign investors recorded a net fund outflow of US$216 million.

Before the net fund outflows during the August-September period, foreign investors recorded a monthly net fund inflow for 11 months in a row, according to the statistics compiled by the commission.

LOOKING BACK

In the first nine months of this year, foreign investors registered a net fund inflow of US$15.09 billion, the commission said.

In the past nine months, foreign institutional investors bought a net NT$302.67 billion worth of shares on the main board and a net NT$33.30 billion worth of shares in the local over-the-counter market, the commission said.

This story has been viewed 1341 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top