Net foreign stock investment amounts to US$195.5 billion

The China Post staff

The net foreign investment in Taiwan stocks during this year reached NT$195.5 billion as of last Friday, only slightly lower than the total of NT$7.821 billion for last year, according to the statistics of the Taiwan Stock Exchange (TSE). As of July 20, foreign investors purchased a total NT$791.9 billion of Taiwan stocks this year, selling NT$596.4 billion worth over the same period.

“The statistics show an increasing interest by foreign investors in Taiwan shares,” said an official at the TSE. Given a continued growth in their purchases of Taiwan shares, the annual net buying of foreign investors could exceed the record high of NT$10.9 billion set in 1999.

Active buying by foreign investors this year is commonly regarded as a major bullish factor for the market. While they purchased nearly NT$200 billion more stocks during the first half of this year, compared to last, the local major institutional investors, consisting mutual fund companies and securities firms, recorded a net buying amounted of only NT$8.8 billion.

As of last Friday, the total foreign holding of Taiwan shares has accumulated to NT$1.135 trillion, accounting for 17.11 percent of the stock market value in Taiwan. As for TSE-listed stocks alone, foreigners’ shareholding is worth NT$750.6 billion, equivalent to 11.31 percent of the market value. The TSE statistics showed that foreign investors invested most in Taiwan Semiconductor Manufacturing Corp. (TSMC), with a total shareholding worth NT$346.2 billion. United Microelectronics Corp. (UMC) came in second place at NT$124.4 billion and Hon Hai Precision was ranked third at NT$83 billion.