Taiwan stocks jump 1811點, retail-investor gauge hits record
The Central Bank released 9月 financial conditions on 27日. Taiwan stocks in 9月 moved in high-level volatility with shrinking turnover, rebounding late in the month, with the TAIEX surging 1,811.66點 in a single month, up 3.93%, driving continued growth in retail funds. Securities settlement deposits, seen as a retail-confidence indicator, rose to 4兆6,981億元, approaching 4.7兆元, growing for two consecutive months, while stock margin balances also climbed to 8,343億元, both setting new historical records.
Turnover slips for three months, rising margin shows confidence
劉淑敏, Officer of the Economic Research Department of the Central Bank, explained that although the daily average turnover of the stock market in 9月 declined for three consecutive months, margin balances continued to increase, showing retail investors still have confidence and funds remain active. By investor-type share of centralized market turnover, the share of domestic natural persons, i.e. retail investors, in 9月 rose to 51.1%, while foreign juristic persons accounted for 38.3% and domestic juristic persons for 10.5%. Foreign-currency NTD deposits representing foreign-investor confidence fell to 2,458億元, mainly due to a lower base last year and higher remittances by foreign investors, with funds retained by foreign bank branches, sub-branches or custodians to meet related needs.
Foreign-currency deposits top 10兆 for first time, firms park overseas funding
Notably, foreign-currency deposits at the end of 9月 exceeded 10兆元 for the first time, a record high. 劉淑敏 said there were three reasons: first, brisk imports and exports brought export proceeds into accounts; second, companies raised funds by issuing overseas corporate bonds and parked the funds temporarily, for example 聯發科 issued overseas unsecured convertible bonds totaling 39億美元, with the funds temporarily parked in accounts; third, private investors took profits and parked funds temporarily.
Loans and investments up 9.79% year-on-year, 28-year high
With good economic conditions and stock market performance, the year-on-year growth rate of loans and investments by all monetary institutions at the end of 9月 continued to rise to 9.79%, a new high since 1998年12月, mainly as year-on-year growth in claims on the private sector, public enterprises and the government rose, showing strong funding demand from public and private enterprises. Among them, the year-on-year growth rate of claims on the private sector exceeded 10% for 5 consecutive months, reaching 10.71% in 9月, a nearly 21-year high, mainly on increased bank investments, while the year-on-year growth rate of claims on public enterprises also rose to 13.07%, mainly on increased working-capital demand from Taipower, Taiwan Water and CPC. The year-on-year growth rates of M1B and M2 in 9月 rose to 7.20% and 7.24% respectively, mainly on the higher year-on-year growth of loans and investments and temporarily parked overseas fundraising by enterprises, while average M1B and M2 year-on-year growth from January to 9月 this year were 7.65% and 6.69% respectively.