The number of small retail investors increased 2.08 percent in the first quarter of this year from the previous quarter, suggesting they intend to hold or even buy the dip, despite facing a correction on the local stock market.
The latest data released on Monday by the Taiwan Stock Exchange (TWSE) showed that the number of retail investors with quarterly trading of less than NT$100 million (US$3.08 million) of stocks in the first quarter increased by 106,829 from the previous quarter to 5.23 million, the second-highest level on record.
The highest number of small retail investors, 5.52 million, was recorded in the third quarter of last year, TWSE data showed.
Photo: Ritchie B. Tongo, EPA-EFE
In contrast, the number of retail investors with minimum quarterly trading of NT$500 million in stocks in the first quarter fell 694, or 21 percent, to 2,622, while those with quarterly turnover of NT$100 million to NT$500 million dropped 5,710, or 20.5 percent, to 22,048, the exchange said in a statement.
Last quarter, the number of “big players” and “mid-sized players” fell to their lowest levels since the second quarter of 2023, when figures stood at 2,427 and 20,546 respectively, TWSE data showed.
The retreat came as stocks in Taiwan slumped in the first quarter amid worries about US President Donald Trump’s tariff policy and Chinese start-up DeepSeek’s (深度求索) launch of its less costly artificial intelligence model rattled investors and generated volatile market trading.
During the first quarter, the TAIEX plunged 2,340 points and the total market capitalization of TWSE stocks decreased NT$7.35 trillion, exchange data showed.
Overall, retail investors accounted for 50.8 percent of the market’s turnover of NT$19.9 trillion in the first quarter, down from 52.8 percent in the previous quarter, while foreign institutional investors made up 36.21 percent, also down from 35.04 percent.
Local institutional investors represented the remaining 12.99 percent, up from 12.16 percent the previous quarter, the TWSE said.
The TAIEX yesterday closed 1.96 percent lower at 19,468.
The index has fallen 15.49 percent since the beginning of the year, exchange data showed.
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