Equity investors lose an average of NT$250,000 in 2015: market stats


CNA

TAIPEI — Equity investors in Taiwan suffered average losses of about NT$250,000 (US$7,576) in 2015 year, as the weighted index on the local main board fell more than 10 percent this year, market statistics showed Thursday.

The weighted index on the Taiwan Stock Exchange (TWSE) closed 0.7 percent higher at 8,338.06 points Thursday, the last trading day of the year.

However, the index dropped 10.41 percent, or 969.20 points, for the year, the steepest annual decline since 2011 when it fell 21.18 percent.

On average, equity investors sustained losses of NT$250,000, which were calculated based on 9.59 million valid securities investment accounts after a sharp annual decline of NT$2.41 trillion in market capitalization on the main board.

As of Thursday, market cap on the local main board stood at NT$24.46 trillion.

The losses by equity investor eroded the average NT$248,000 in earnings by investors in 2014, when the weighted index rose by an annual 8.08 percent to close at a 25-year high of 9,307.26 points.

The local main board started off well this year, although market sentiment was haunted by the debt crisis in Greece.

Buying was sparked by the European Central Bank’s move to ease its monetary policy, which offset the impact of the Greek financial crisis, dealers said.

On April 27, the weighted index breached the 10,000 point mark briefly for the first time in 15 years. The next day, it hit 10,014.28 points intraday, although it fell to 9,956.83 points by the close.

After those two sessions, however, shares in Taiwan started to move lower amid lingering concerns over the local economic fundamentals.

The government several times lowered its forecast for Taiwan’s 2015 gross domestic product (GDP) growth as the country’s exports plunged amid falling global demand. While the government’s most recent forecast for Taiwan’s 2015 GDP growth was 1.06 percent, several economic think tanks have said it would be difficult to achieve 1 percent growth.

Investor confidence was hit by the global financial turmoil in August, when the People’s Bank of China sharply cut the Chinese yuan’s reference rate against the U.S. dollar, sending the Chinese currency into a tailspin. As a result, the weighted index on the Taiwan market fell to 7,203.07 on Aug. 24, an intraday low this year, before the National Financial Stabilization Fund moved in to prop up share prices.

The weighted index subsequently rebound to 8,871.87 points in November, but selling reemerged, pushing the index below the 8,000 mark again earlier this month due to an interest hike in the U.S. and weaker oil prices.

The average daily turnover on the local main board for the year was about NT$92.5 billion, compared with NT$92.92 billion in 2014.