The operation result of the National Financial Stabilization Fund in 2020
The operation result of the National Financial Stabilization Fund in 2020 described below:
1.Operation period from March 20 to October 12, disposal period from October 13 to November 9.
2.Financial benefits: (all dollar amounts are in NT$)
(1)Net cash revenues from disposal of shares: 990 million.
(2)Cost of shares acquisition: 757 million (excluding a financing cost of 3 million).
(3)Net revenues from share transactions: 233 million.
(4)The Fund has received 35 million in dividend as a result of this share purchase. Total net income: 268 million. Deducting financing costs of 3 million and transaction costs of 7 million leaves a total net income of 258 million.
3.Benefits of operation:
(1)The weighted index on the TAIEX soared 4,274.57 points, or 49.24 percent, from a low of 8,681.34 seen on March 19 to close at 12,955.91 on October 12. This fully shows that the Fund has exerted its influence and achieved its charge to stabilize the market.
(2)Considering market stability and liquidity, the Fund started selling shares on hand on October 13, and continued to sell shares from time to time until November 9.The stock market had risen steadily during the period of share disposal.
Due to the fact that the performance of the local stock market is still vulnerable to changes in the international political and economic situation, the Fund will continue to watch for possible volatility in local stock prices.
Contact Person: Director LO, HSING-JUNG
Contact Tel. (02)2322-8086
Issued：National Treasury Administration