The nation’s securities account balance, a gauge of retail investors’ confidence in local equities, rose to its highest level in four months last month, as the TAIEX maintained its upward momentum from the previous month, data released by the central bank showed on Thursday.
The securities account balance increased for a second consecutive month to NT$3.34 trillion (US$106.70 billion), up NT$46.2 billion from NT$3.29 trillion in the previous month, the data showed.
In terms of the proportion of market transactions, retail investors accounted for 56.7 percent of the trading volume, compared with 56 percent one month earlier, while foreign institutional players accounted for 30.8 percent, down from 33.5 percent, the data showed.
The central bank’s latest data reflected that stock market sentiment remained bullish in the past two months as the TAIEX averaged 17,570 points last month, up from 16,978 points in November and 16,422 points in October.
The daily average turnover on the local bourse also expanded to NT$292 billion last month, compared with NT$271.4 billion in November and NT$248.5 billion in October, the data showed.
The benchmark index yesterday closed at 17,995.03 points, down 0.04 percent from the previous session but having risen 0.4 percent so far this month, the Taiwan Stock Exchange’s data showed.
“The securities account balance last month hit the third highest on record and the annual growth rate in M2 money supply is still within the central bank’s target of between 2.5 percent and 6.5 percent despite five interest rate hikes since March 2022, indicating that funding activity in the private sector remained vibrant and the liquidity level in the entire market is still abundant — which is beneficial to consumption, the stock market and other investment activities,” Yuanta Securities Investment Consulting Co (元大投顧) said in a note on Thursday.
With the continued increase in the securities account balance, M1B money supply — a measure of money in circulation, including currency and passbook savings deposits — posted an annual growth rate of 3.11 percent, up from a 3.03 percent increase in November, the central bank said in a report, attributing the increase to faster annual growth in passbook savings deposits.
The annual growth rate in broader measure M2 — which includes time deposits, time-saving deposits, foreign currency deposits, mutual funds and M1B — slowed to 5.3 percent from 5.33 percent, due to a sequential decrease in net foreign capital inflows, it said.
For the whole of last year, M1B rose 2.82 percent and M2 advanced 6.25 percent from a year earlier, central bank data showed.
“The latest money supply data show that the liquidity in the nation’s financial system remains sufficient within a neutral-to-loose monetary policy environment, which is conducive to overall economic growth,” Yuanta said.
ECONOMY TWEAK: Lowering the rate would allow more cities in China to reduce minimum mortgage rates for homebuyers, which might stimulate sluggish demand China yesterday ramped up support for its property sector with its biggest-ever cut to a key mortgage reference rate, raising expectations for more aggressive measures to support the economy in the months to come. Chinese lenders slashed their five-year loan prime rate (LPR) by 25 basis points to 3.95 percent, the People’s Bank of China said. It was the first cut since June last year and the largest reduction since a revamp of the rate was rolled out in 2019. Lowering that rate will allow more cities in China to reduce minimum mortgage rates for homebuyers, which might stimulate sluggish demand for apartments
OVERSEAS: The company is expanding with OSAT development in India, an EV factory in Thailand and possibly an 12-inch fab in Malaysia, Young Liu said Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, is expected to forge deeper and more comprehensive collaborations with its main customer Apple Inc, the company’s chairman said on Tuesday. Speaking before a dinner banquet on Tuesday to mark the company’s 50th anniversary, Hon Hai chairman Young Liu (劉揚偉) said that the two companies would forge a deeper and more extensive partnership. “Everything that should be there will be there and nothing will be missed,” Liu said, when asked about the progress made in Hon Hai’s collaborations with Apple in the artificial intelligence and electric vehicle (EV) fields. Hon
UP AND DOWN: Although average regular monthly pay rose 2.43 percent to NT$45,496 last year, sharper inflation of 2.5 percent drove real monthly wages down 0.05 percent The labor market improved last year with a rise in employment, as well as monthly take-home pay and total wages, but faster inflation wiped out those increases, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. The industrial and service sectors hired 7,000 people, a 0.09 percent increase from the previous year, to grow the workforce to 8.17 million people, as retailers, hospitality and tourism companies benefited from “revenge” consumption in the post-COVID-19-pandemic era, the agency said. Strong consumer spending more than offset a slowdown that hit manufacturers and shrank their payroll by 0.74 percent, it said. Steep global inflation and monetary
SLOWING DOWN: Last year, new investment in China from Taiwanese firms fell to its lowest since 2001, while that of Japanese firms also fell to a 10-year low Foreign businesses’ direct investment into China last year increased by the lowest amount since the early 1990s, underscoring challenges for the nation as Beijing seeks more overseas funds to help its economy. China’s direct investment liabilities in its balance of payments was US$33 billion last year, data released on Sunday by the Chinese State Administration of Foreign Exchange showed. That measure of new foreign investment into the country — which records monetary flows connected to foreign-owned entities in China — was 82 percent lower than the 2022 level and the lowest since 1993. The data show the effect of COVID-19 lockdowns and weak