Oct 11, 2019 Market Comments Off on Number of big stock market players in Taiwan rises further in Q3
Taipei, The number of major retail investors who traded more than NT$500 million (US$16.13 million) in shares on Taiwan's stock market continued to rise in the third quarter, in part because of eased concerns in September over a global trade war.
There were 1,115 major market players during the July-September period, up 88 from the 1,027 who traded more than NT$500 million in shares in the second quarter, according to Taiwan Stock Exchange (TWSE) data.
The third quarter figure was the highest since the fourth quarter of 2018, when the number was 1,137.
The Taiex, the stock market's benchmark weighed index, rose 141.16 points, or 1.32 percent, from the second quarter after the index bounced back by 2.39 percent in September, when the United States and China agreed to resume high-level trade talks in October.
The gains also resulted from hopes that the U.S. Federal Reserve would cut its interest rates in a policymaking meeting in September, which brought more big players back to the market, analysts said.
Due to the increase in participation by major market players, the TWSE said, the share of total turnover attributable to retail investors in the third quarter rose to 59.37 percent, from 56.79 percent in the second quarter.
Domestic and foreign institutional investors both saw their shares of total turnover fall, TWSE data showed.
Domestic institutional investors accounted for 14.07 percent of total turnover in the third quarter, down from 14.58 percent a quarter earlier.
Foreign institutional investors accounted for 26.56 percent of total turnover, down from 28.64 percent a quarter earlier, the TWSE said.
Day trading accounted for 26.76 percent of the total turnover in the third quarter, the TWSE said, with 44,379 investors participating in day trading.
Day trading allows traders to buy and then sell or sell and then buy the same shares in a single session.
On the over-the-counter (OTC) market, the number of major retail investors who traded more than NT$100 million in shares in the third quarter also rose by 125 from the second quarter to 3,304, the Taipei Exchange, which operates the OTC market, said.
It was the second straight quarter in which the number of major retail investors on the OTC market increased, the exchange said.
The index on the OTC market rose about 2 percent in the third quarter.
Source: Focus Taiwan News Channel