Taipei, Oct. 6 (CNA) The National Financial Stabilization Fund will continue lending support to the local equity market after having been active in the market this year since July, the management committee of the fund announced Thursday following a regular committee meeting.
Sometimes, when I read the economic news, I think the Democratic Progressive Party (DPP) ought to drop the second word in its name.
The nation’s latest iteration of its informal national motto of “socialism for the rich, capitalism for the poor” occurred last week when the Ministry of Finance (MOF) announced it was activating the National Financial Stabilization Fund (國安基金). Was this for all the shopkeepers and restauranteurs slammed by inflation? Was it to increase the pay of ordinary working stiffs?
Of course not. The stock market’s benchmark index had fallen 23.4 percent this year, according to a recent Reuters
The TAIEX slid again yesterday, declining more than 20 percent from a January high and entering a bear market.
The weighted index closed 3.3 percent lower in Taipei. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which accounts for more than one-quarter of the index’s weighting, declined 4.73 percent to close at NT$4,553.5 amid broad weakness in the chip sector following Micron Technology Inc’s disappointing forecasts.
Tech-heavy equity markets in Taiwan and South Korea were among the worst performers in Asia last quarter, both down more than 15 percent amid rate hikes by global central banks. Foreign investors net sold more than US$16
The TAIEX yesterday slumped as it widened its decline from a January high to more than 19 percent and is just points away from a so-called bear market.
The index closed 2.7 percent lower yesterday, making it the worst performer in Asia. It was dragged by chipmakers after Bank of America took a cautious view on the industry’s growth prospects.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which accounts for more than one-quarter of the index’s weighting, dropped 3.05 percent to close at NT$476 yesterday.
The TAIEX tumbled 2.72 percent to 14,825.73.
Facing headwinds of rate hikes by global central banks, tech-heavy stock