The committee of the National Stabilization Fund (國安基金) yesterday decided not to enter the market to prop up share prices, which have been taking a beating amid concerns over more aggressive US Federal Reserve monetary policy to deal with skyrocketing inflation.
In a statement released after the committee’s meeting, the Ministry of Finance said that despite external factors, the nation’s economic fundamentals remain sound and it was not necessary for the stabilization fund to intervene in the market at this time.
The NT$500 billion (US$16.77 billion) stabilization fund was set up by the government in 2000 to serve as a buffer against unexpected external factors that might disrupt the local bourse.
The nation’s exports are still growing, registering a 15.2 percent year-on-year increase last month to US$42.2 billion, which was the 24th consecutive month of year-on-year growth, the ministry said.
The nation’s economy is expected to grow 3.91 percent this year, the Directorate-General of Budget, Accounting and Statistics has forecast, which is higher than the 2.9 percent estimate for the global economy, as projected by global information services firm IHS Markit in May, it said.
In addition, companies listed on the main board and the over-the-counter market posted combined sales of NT$3.48 trillion for May, which was a monthly high, and falling share prices have made the local equity market more attractive, it added.
Furthermore, with the number of daily domestic COVID-19 cases falling, domestic demand is expected to improve, the ministry said.
However, the stabilization fund committee would continue to monitor stock market fluctuations, it said.
The last time the fund intervened was March to October 2020, when investor confidence was being battered in a market roiled by the COVID-19 pandemic.
After the entry of the fund, the TAIEX soared 4,274.57 points, or 49.24 percent, from a low of 8,681.34 on March 19 to 12,955.91 on Oct. 12.
The stabilization fund bought only NT$757 million of shares during that period, as the market was boosted largely by foreign fund inflows.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS