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Despite drop in Taiex, 70% of mutual funds record gains in Q2

Despite drop in Taiex, 70% of mutual funds record gains in Q2

Taipei, July 4 (CNA) Despite a drop in the Taiwan Stock Exchange Capitalization Weighted Stock Index (Taiex) on the main board in the second quarter of this year, 70 percent of the mutual funds tracking local share prices posted gains, according to market statistics. During the April-June period, the weighted index on the Taiwan Stock Exchange fell 263.42 points or about 2.8 percent, some 70 percent of the 152 mutual funds investing in the local equity market remained profitable with an average gain of 3.1 percent, the data showed. Market analysts said that the local equity market as a whole had suffered losses in the April-June period amid rising fears over a possible move by the U.S. Federal Reserve to kick off an interest rate hike cycle and lingering concerns over the debt problems in Greece. In the first half of this year, 90 percent of these mutual funds made a profit with an average gain of 8.6 percent, while the weighted index on the local main board stayed little changed. In the second quarter, the 10 most profitable mutual funds targeting the Taiwan market recorded a more than 10 percent gain. Among the 10 top earners, one was a small and medium cap mutual fund, and two were high-tech mutual funds. The most profitable one was the UPAMC Small and Medium Cap Fund with a return of 16.3 percent, the data showed. Analysts said that the debt woes in Greece are expected to continue to affect share prices here in the third quarter. The debt-ridden country has scheduled a referendum for Sunday for its people to decide whether they will accept the conditions set by creditors. If the vote is a "no", the odds of Greece to exiting the eurozone will increase. Analysts said that even if there is any technical rebound, there could be limited room for the local index to move higher in the third quarter. (By Tien Yu-pin and Frances Huang)


Updated : 2021-09-28 15:31 GMT+08:00