The nation’s net foreign fund outflow totaled US$3.89 billion last month, the first outflow over the past six months, as foreign institutional investors continued to sell local shares amid the COVID-19 outbreak, Financial Supervisory Commission (FSC) data showed.
Foreign institutional investors sold a net NT$129.24 billion (US$4.3 billion) of shares in the local equity market last month, higher than the NT$36.46 billion sold in January, the data showed.
Foreign investors dumped a net NT$129.8 billion of local shares of companies listed on the Taiwan Stock Exchange, while they purchased a net NT$627 million on the Taipei Exchange, lower than the NT$6.53 billion bought a month earlier, the data showed.
“That reflected weak confidence among foreign institutional investors amid the ongoing outbreak. They were concerned with local companies’ profitability, with the outbreak disrupting supply chains and delaying companies’ resumption of operations,” a commission official surnamed Wu (吳) told the Taipei Times.
The benchmark TAIEX recovered its previous loss in the middle of February, but steadily went down with the escalating outbreak, the TWSE data showed.
Equity markets in neighboring countries also witnessed a retreat.
Due to the sell-off, the value of foreign institutional investors’ equity assets accounted for 40.69 percent of total last month, down from 41.23 percent a month earlier, Wu said.
However, the commission was not concerned about last month’s net outflow, as the amount was not particularly big, Wu said.
“The movement of foreign funds is volatile in Taiwan, with net inflow and outflow. We already saw net inflow of foreign funds earlier this week,” Wu said.
Last month’s difference between the amount of fund outflow and the amount of foreign institutional investors’ selling could be because some investors did not immediately move their funds out of Taiwan, Wu said.
Those investors might plan to buy local stocks again in the near term or simply wait for the exchange rate of the New Taiwan dollar against the US dollar to strengthen, which would help investors earn more money when converting the local currency to the greenback, Wu said.
Chinese institutional investors reported a net fund outflow of US$3.7 million after selling a net NT$316 million in local shares last month, the commission’s data showed.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the