FSC to Pay Close Attention to Subsequent Trend of Taiwan Stock Prices, and Advise Investors to Focus on Fundamentals of TWSE and TPEx Listed Companies
2022-09-28
I. Recent stock market overview: Taiwan stocks have been affected by international situations. such as the US Federal Reserve rate rise, the appreciation of the US dollar and the geopolitical situation, and the weighted stock price index (TAIEX) of the Taiwan Stock Exchange fluctuated greatly. The TAIEX closed at 13,466 points today (September 28), down 361 points (2.61%), and the trading volume is about NT$224.6 billion, a substantial increase of NT$185.3 billion over the average daily volume last week. This shows that investors are still confident in the market and are bargain hunting. In addition, the amount oversold by foreign investors was not large in the last 3 business days (from September 26 to September 28).
II. The fundamentals of Taiwan stocks are sound and fairly resilient: The overall P/E ratio as of the end of August 2022 was 10.95, the cash yield rate reached 4.68% (4.86% with stock dividends included), and the cumulative revenue of TWSE and TPEx listed companies as of August 2022 was NT$28 trillion (up 9.93% year on year). In addition, the overseas investment income of TWSE and TPEx listed companies in the first half of 2022 totaled NT$624.8 billion, the highest in the same period of nearly 10 years. The TAIEX has dropped 24.11% as of September 27 this year (2022); in comparison, other major market indices also dropped in the same period, e.g. South Korea (-25.31%), Shenzhen (-24.78%) and the US Nasdaq (-30.78%).
III. The FSC suggests that investors pay more attention to the changes in the fundamentals of TWSE and TPEx listed companies, and invest prudently according to their own investment strategies. As the US rate rise continues, the market will be affected by it as well as the war between Russia and Ukraine in the future. The FSC will pay close attention to the subsequent US rate rise, and will track the impact of the inward and outward remittances of foreign capital on Taiwan stocks to take relevant measures in due course.
Contact unit: Ming-Chun Chiu, Section Chief, Securities Trading Division, Securities and Futures Bureau
Tel: (02) 2774-7431
For questions, please write to:FSCmail
II. The fundamentals of Taiwan stocks are sound and fairly resilient: The overall P/E ratio as of the end of August 2022 was 10.95, the cash yield rate reached 4.68% (4.86% with stock dividends included), and the cumulative revenue of TWSE and TPEx listed companies as of August 2022 was NT$28 trillion (up 9.93% year on year). In addition, the overseas investment income of TWSE and TPEx listed companies in the first half of 2022 totaled NT$624.8 billion, the highest in the same period of nearly 10 years. The TAIEX has dropped 24.11% as of September 27 this year (2022); in comparison, other major market indices also dropped in the same period, e.g. South Korea (-25.31%), Shenzhen (-24.78%) and the US Nasdaq (-30.78%).
III. The FSC suggests that investors pay more attention to the changes in the fundamentals of TWSE and TPEx listed companies, and invest prudently according to their own investment strategies. As the US rate rise continues, the market will be affected by it as well as the war between Russia and Ukraine in the future. The FSC will pay close attention to the subsequent US rate rise, and will track the impact of the inward and outward remittances of foreign capital on Taiwan stocks to take relevant measures in due course.
Contact unit: Ming-Chun Chiu, Section Chief, Securities Trading Division, Securities and Futures Bureau
Tel: (02) 2774-7431
For questions, please write to:FSCmail
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Update：
2022-10-17