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Taipei, January 12 (CNA) According to the Ministry of Finance (MOF), Taiwan’s National Financial Stability Fund will intervene in Taiwan’s stock market from July 13, 2022 to April 13, 2023, and purchase stocks. announced that it had a return of 20.7%. statement.
The stabilization fund, set up to cushion market volatility, announced its latest financial results at the Regular Fund Committee meeting on Thursday.
545% over the nine-month period to counter volatility from the U.S. Federal Reserve’s aggressive rate hikes, which pushed the federal funds rate from zero in early 2022 to 5.25% by July 2023. The company announced that it has invested NT$10 million into the market.
The Ministry of Finance (MOF) estimated that the National Financial Stability Fund would have earned about NT$11.3 billion (US$362.88 million) after completely withdrawing from intervention by mid-April 2023. .
The Ministry of Finance said the profit, which represents a rate of return of 20.7%, included cash dividend income of NT$1.38 billion, but a detailed breakdown of the shares purchased and the income they generated was not clear. I didn’t.
The Stability Fund noted that the Taiwan Stock Exchange (TWSE)’s benchmark weighted index, TaiEx, fell below 14,000 points for the second time in the same month after spending most of the first quarter at about 18,000 points. It was implemented in July 2022, the day after the .
At the time, global financial markets were in turmoil as concerns grew over the sudden rise in interest rates in the United States to combat high inflation.
The NT$500 billion Stabilization Fund was established by the government in 2000 to act as a buffer against unexpected external factors that could disrupt local stock exchanges.
The company’s nine-month intervention from July 2022 to April 2023 is the eighth time in its history that it has intervened in the market with the aim of stabilizing stock prices, and the longest intervention in history, spanning 275 days and 181 trading sessions. Ta.
Deputy Finance Minister Juan Ching-hwa (Ruan Qinghua), secretary general of the Fund Committee, said that during the intervention period, Thailand trade soared by 13.29%, indicating that it had contributed to the health of the local stock market.
Huang said the stabilization fund’s intervention achieved the fund’s goal of increasing investor confidence, boosting stock prices and smoothing market fluctuations without negatively impacting market movements.
According to the committee, the NT$54.51 billion investment is the third largest intervention in the fund’s history, after NT$60 billion in 2008 and NT$120.1 billion in 2000.
Mr. Huang said that while TYEX has achieved strong performance, recovering to the 17,000 point level in the past eight months, the fund committee will continue to monitor domestic and international market trends in order to respond quickly to volatility. Stated.
In 2023, Thai Ex increased by 3,793.12 points (26.82%). This is mainly due to increased interest in artificial intelligence development and expectations that the US Federal Reserve will start cutting interest rates in 2024.
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