The number of “big accounts,” who invest and trade local stocks heavily, last quarter increased 41 percent to 2,369 from a quarter earlier, encouraged by the bull market, Taiwan Stock Exchange (TWSE) data showed yesterday.
The number of “big accounts,” which set an all-time high, is seen as an important indicator of investor confidence in the local markets.
A “big account” is defined as an individual investor who trades at least NT$500 million (US$17.25 million) of shares on the exchange in a single quarter.
Also reaching records were the number of mid-sized investors — those trading NT$100 million to NT$500 million in a single quarter — who totaled 20,534, up 34 percent quarter-on-quarter, and retail investors — those trading less than NT$100 million — who totaled 3.23 million, up 15 percent, the data showed.
The TAIEX continued its uptrend to 12,976 points on Sept. 16, after surpassing 12,000 points in early July. The index then dropped to 12,515 points at the end of last month, dashing investors’ hopes that it would surpass 13,000 points.
The increase in “big accounts” could be attributed to more mid-sized investors focusing on day trading to take advantage of market volatility, TWSE trading division director Ben Chen (陳正斌) told the Taipei Times by telephone.
As day traders buy and sell the same stocks within the same day, they register more transactions, Chen said, adding that the new big players are likely those who trade frequently enough to hit NT$500 million in day trading transactions.
Day trading transactions in the third quarter made up 33.87 percent of all transactions on the TWSE, up from 29.36 percent in the second quarter, while the number of day trading accounts last quarter grew to 80,930, up 17.5 percent quarterly, the data showed.
“As the TAIEX was trading at a comparatively high level and investors had difficulty forecasting when the benchmark would surpass 13,000 points, some investors preferred to avoid the risks associated with short-term and even day trading,” Chen said.
The increase in retail investors could be attributed to more of them choosing to manage wealth by investing in equities, rather than saving their money in banks, given the low interest-rate environment, he said.
The number of transactions by investors who make regular investments in the stock market — dollar-cost averaging investing — totaled NT$1.75 billion last month, up from NT$1.31 billion in June, the data showed.
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months
LEANNESS-ENHANCING DRUG: Assigning a commodity classification to meat containing ractopamine could come under scrutiny by the WTO, the economic affairs minister said Minister of Economic Affairs Wang Mei-hua (王美花) yesterday rejected opposition lawmakers’ calls to assign a product code for US pork and beef containing ractopamine. Facing a barrage of questions from lawmakers at a meeting of the legislature’s Economics Committee, Wang said that giving meat containing residues of ractopamine a commodity classification code would sow confusion and could come under scrutiny by the WTO. “Ractopamine is not a [meat] product, it is an additive,” said Wang, when questioned by Taiwan People’s Party (TPP) Legislator Chiu Chen-yuan (邱臣遠). “If we had a serial code for every additive it would cause confusion. There is