Alexa
  • Directory of Taiwan

No signs of large fund outflows: FSC head

No signs of large fund outflows: FSC head

Taipei, March 11 (CNA) Financial Supervisory Commission (FSC) Chairman Tseng Ming-chung (???) said Wednesday that while foreign institutional investors have been net sellers of Taiwan shares in recent days, there were no signs of large fund outflows.
In fact, foreign institutional investors continue to record net fund inflows into Taiwan, Tseng said on the sidelines of a committee hearing of the Legislative Yuan. As of Tuesday, foreign institutional investors had made net fund inflows of US$680 million in the first 10 days of March, according to the FSC, Taiwan's top financial regulatory agency. Tseng's comment came as investors worried that a plunge on Wall Street overnight could hurt the performance of Taiwan's bourse, which is highly correlated to the U.S. market. Amid concerns that the U.S. Federal Reserve will kick off an interest rate hike cycle sooner rather than later due to a strong U.S. jobs report for February,, the Dow Jones Industrial Average fell 1.85 percent and the tech-heavy NASDAQ index lost 1.67 percent. In the past two sessions in Taiwan, foreign institutional investors have sold a net NT$19.41 billion (US$614 million) in shares. Despite the concerns, the local bourse appeared resilient Wednesday morning, with the stock exchange's weighted index adding 0.07 percent at 9,542.99, off an early low of 9,472.54, as of 11:45 a.m. Analysts said Taiwan's market was apparently seeing technical support after the index fell below the 9,500-point mark and showing signs of stabilizing technically despite Wall Street's heavy losses overnight. Although foreign institutional investors continued to move funds into the market, Tseng said earlier this month that local investors should remain alert over possible risks if the Fed starts to raise interest rates later in the year, which could prompt many foreign investors to expatriate their funds. (By Wu Ching-chun and Frances Huang)


Updated : 2021-09-28 22:39 GMT+08:00