Foreign investors post TAIEX buying surplus of NTD 166.8 billion so far this year

June 9, 2005

With Morgan Stanley Capital International raising its weighting for the Taiwan Stock Exchange, the "Morgan Effect" is once again leading to an increase in stock purchases on the TAIEX. Qualified foreign institutional investors have been pouring funds into Taiwanese stocks over the last half of May, buying NTD 22.194 billion more than they sold. Building on previous purchases, this brings the foreign investor buying surplus for the first half of the year to NTD 166.8 billion, with a total of NTD 1.253585 trillion of stock bought in and NTD 1.086833 trillion sold.

As of May 27, QFII controlled a market value of NTD 3.5856 trillion in TAIEX stocks, 26.03% of the total value of the TAIEX.

JP Morgan reports that, over the last two weeks, 98% of the funds pumped into the TAIEX by foreign investors has gone to tech stocks. The three companies attracting the greatest portion of this investment have been long-time foreign investor favorites United Microelectronics, Taiwan Semiconductor Manufacturing Co. and AU Optronics Corp.

The TAIEX closed up 2.04 points at 6,011.56 points on May 31.

This increased foreign investment in the TAIEX is partially responsible for the appreciation of the NT dollar.

The NT dollar stood at NTD 31.363 against the US dollar on May 31.

(Central News Agency)

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