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Taiwan govt's stability fund stops shoring up island's stock market
[TAIPEI] Taiwan's National Stability Fund said on Tuesday it will stop supporting the island's stock market as local shares have increasingly stabilized and become less affected by global financial markets.
Taiwan's benchmark index has gained 15.1 per cent since the fund began to intervene on Aug 25 and is more stable than major global bourses, Wu Tang-chieh, who is in charge of the fund, told a briefing.
"The fund will stop executing its job of stabilising the market, effective immediately," Mr Wu said. "Our staff will continue to monitor global economic situations and their impact.
If necessary, we'll convene to decide whether to execute the mission again." The government fund was set up to prevent plunges during market turmoil that could lead to disorders in financial markets or instability.
The fund held shares of T$18.7 billion (S$778.2 million) as of March 31, with realised capital gains of T$96.3 million and unrealised gains of T$1.48 billion, according to a statement from the fund.
The announcement came after the end of Tuesday trading, during which the main index ended 0.37 per cent lower at 8,531 points.