Sat, Dec 29, 2018 - Page 12 News List

Equity investors lose out as TAIEX falls 8.6% in 2018

NO SMALL SUM:The Taiwan Stock Exchange said that of 10.22 million stock investors, the 7.05 million who actually traded this year lost an average of NT$642,000 each

Staff writer, with CNA

Equity investors in Taiwan incurred NT$442,700 (US$14,405) in losses on average this year, after the local main board fell about 8.6 percent amid global financial market volatility, according to data released yesterday — the last trading day for the local equity market this year.

The Taiwan Stock Exchange (TWSE) said the main board’s market capitalization declined by NT$4.53 trillion from NT$31.83 trillion at the end of last year to NT$27.31 trillion, after the TAIEX fell 915.45 points this year.

As 10.22 million stock investors were registered as of the end of last month, the fall in market cap cost them NT$442,700 each on average this year, the TWSE said, adding that based on the 7.05 million stock investors who traded this year, the average loss was NT$642,000.

The TAIEX moved above the 10,000-point mark for most of the year before the main board encountered turmoil in October, when trade tension between the US and China struck global investors’ nerves and US Federal Reserve rate hikes hurt market sentiment.

On Oct. 11, the TAIEX fell 660 points to close at 9,806.11, marking the first time the index had ended below 10,000 points since May last year. In October alone, the main board fell 1,204 points.

The benchmark closed below 10,000 points from Oct. 11, aside from three trading sessions on Oct. 12, Dec. 3 and Dec. 4.

The three largest market cap stocks all fell this year, with contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) falling 1.74 percent, Formosa Petrochemical Corp (台塑石化) losing 5.63 percent and iPhone assembler Hon Hai Precision Industry Co (鴻海精密) plunging 25.63 percent, the TWSE said.

Electrical equipment maker Klingon Aerospace Inc (樂士) posted the highest gains of 435.17 percent this year, after the company cut its paid-in capital by 89 percent to reduce losses. Taiwan depositary receipts issued by Hong Kong-listed Evergrande Health Industry Group (恆大健康) came in second, with gains of 218.84 percent.

Green Energy Technology Co (綠能科技), which is seeking debt restructuring, fell 85.06 percent this year, the steepest decline on the main board, followed by functional textile maker Sumagh High Tech Corp (本盟光電), which was down 79.7 percent.

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