Securities houses recorded NT$2.17 billion (US$73.79 million) in aggregate profit last month, surging 94.43 percent from a month earlier, as foreign investors increased their stakes despite partisan wrangling at home and in the US.
The TAIEX advanced 1.89 percent, or 151.98 points, last month, with foreign investors increasing their net position by NT$120.99 billion, while proprietary traders trimmed NT$2.53 billion and investment trust firms slashed NT$5.97 billion, Taiwan Stock Exchange (TWSE) data showed.
The fund inflows helped boost earnings at local securities houses, 57 of which reported profits, compared with 24 that incurred losses, the TWSE said in a statement.
“The US shutdown drama weighed on financial markets across the globe last month, but the local bourse proved the exception, as foreign investors built up their stakes for 21 straight sessions,” Fidelity Investments fund manager Eric Lai (賴葉臣) said in a note.
Non-tech shares led the rebound, with the glass index rising 8.76 percent, transportation plays ending 7.05 percent higher and auto stocks adding 6.53 percent, TWSE statistics showed.
The cement index also picked up 5.45 percent and tourism shares gained 4.57 percent.
The rallies came even though Taiwan is having its own political standoff between the executive and legislative branches, Lai said, attributing the uptrend to the nation’s improving economic fundamentals.
KGI Securities Co (凱基證券), the nation’s second-largest brokerage by market share, topped its peers with profits of NT$416.65 million last month. It was followed by Yuanta Securities Co (元大證券) at NT$301.59 million and President Securities Corp (統一證券) at NT$205.45 million, TWSE data showed.
On the other end of the spectrum, Macquarie Taiwan was the biggest loser with NT$25.11 million in lossses; Barclays Taiwan was second with losses of NT$21.13 million and Nomura Securities third with NT$13.66 million in losses, TWSE tallies showed.