The National Stabilization Fund (NSF, 國安基金) is to continue supporting local shares, as uncertainties in international politics and the economy could affect Taiwanese industries’ global deployment and corporate profits, as well as affect stock movement and investor confidence, the Ministry of Finance said in a statement yesterday.
The NT$500 billion (US$17.1 billion) fund would remain active in the stock market as the US’ tariff measures have not yet been fully finalized, which would drive international capital flows and global supply chain restructuring, the ministry said after the a meeting of the fund’s steering committee.
Along with ongoing geopolitical risks and an unfavorable global economic outlook, the committee allowed the fund to continue its market interventions to maintain investor confidence and capital market stability, the ministry said.
Photo: CNA
The NSF’s steering committee operates under the Ministry of Finance. As permitted under Article 8 of the Act for the Establishment and Administration of the National Stabilization Fund (國家金融安定基金設置及管理條例), the fund intervenes whenever major domestic or international events trigger large movements of international funds, significantly affect public confidence or lead to disorder in the capital and financial markets in Taiwan.
The committee on April 8 activated the fund to shore up the local market amid panic sell-offs triggered by US President Donald Trump’s sweeping tariff announcement on April 2.
The NSF helped support the local market and shore up investor confidence, with the TAIEX surging 4,155.02 points, or 22.51 percent, from April 9 to yesterday, the ministry said.
Although Taiwan outperformed markets in Hong Kong, Tokyo and Shanghai over the same period, in the US, the Philadelphia Stock Exchange Semiconductor Index soared 59.88 percent, the NASDAQ Composite Index gained 34.82 percent and the S&P 500 increased 25.63 percent, while South Korean equities rose 37.02 percent, the ministry said.
According to the latest financial report released by the steering committee, the NSF invested more than NT$7.7 billion between April 9 and June 30. It recorded NT$1.183 billion in unrealized gains and over NT$43.16 million in dividend receivables.
The TAIEX yesterday closed down 136.06 points, or 0.6 percent, at 22,614.97 as investors remained concerned about Trump’s tariff policies after the US president announced a 30 percent levy on imports from the EU and Mexico over the weekend.
Additional reporting by CNA
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