The National Stabilization Fund would remain on stand-by to shore up the local bourse until the COVID-19 pandemic has subsided worldwide, Deputy Minister of Finance Frank Juan (阮清華) said yesterday.
Although Taiwan has stopped the virus’ spread, the fund would remain active in light of fragile financial markets across the world, said Juan, the state-run fund’s executive secretary.
The government activated the fund on March 20 after the TAIEX slumped from 12,000 points to 8,600 in a short period amid a panic selloff.
Photo: Wu Chi-lun, Taipei Times
The main board has since recovered, yesterday closing at 10,997.21 points on turnover of NT$180.767 billion (US$6.03 billion), Taiwan Stock Exchange data showed.
“Small and open, the local bourse is susceptible to external shocks,” Juan told a news conference in Taipei, adding that downside risks remain high abroad.
The number of confirmed cases has flattened in Europe and the US, but continues to soar in Latin America and India, he said, adding that the world might not be truly safe until a vaccine is developed.
The fund’s committee would have the final say on whether it should exit the market and when, Juan said, adding that the members also agree that the fund’s actions should be guided by the virus crisis.
The committee is to next meet on July 15, he said.
The fund accumulated NT$47.34 million in unrealized gains as of late March after spending NT$756 million to bolster local shares, Juan said.
The timing of the intervention was more important than the amount of money in achieving stability and the results lend support to that view, he said.
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