Big stock market players up over 30% sequentially in Q2

Taipei, The number of major retail investors who traded more than NT$500 million (US$16.02 million) in shares in the second quarter rose over 30 percent from a quarter earlier, according to the Taiwan Stock Exchange (TWSE).

There were 1,027 major market players during the April-June period, up 30.99 percent from the 784 seen trading more than NT$500 million in shares in the first quarter, according to data compiled by the TWSE.

Prior to the first quarter, the number of major market players had stayed above the 1,000 mark for six quarters in a row.

Analysts said the gains on the benchmark weighted index on the TWSE, the Taiex, drew some major market players back to the market.

The Taiex rose 2.21 percent in June, in line with an upturn in U.S. markets as concerns were eased that the trade war between the United States and China would get worse following an agreement by U.S. President Donald Trump and his Chinese counterpart Xi Jinping to meet at the G20 summit at the end of the month.

In addition, there were growing expectations that the U.S. Federal Reserve could move to cut interest rates later in the year, analysts said.

The rebound came after a 4.52 percent fall in the Taiex in May, when Washington and Beijing escalated punitive trade tariffs against each other after the U.S. announced a plan to impose punitive tariffs of up to 25 percent on an additional US$300 billion worth of Chinese goods.

In the second quarter, the Taiex was up 0.84 percent from a quarter earlier.

Under such favorable market conditions at home and abroad, there were 8,493 retail investors who traded between NT$100 million and NT$500 million in stocks in the second quarter, up from 6,613 in the first quarter, the data showed.

Despite the increase in participation by major market players, the TWSE said, the share of the total turnover accounted for by retail investors in the second quarter fell 0.13 percentage points from a quarter earlier to 56.79 percent.

Domestic institutional investors accounted for 14.58 percent of total turnover in the second quarter, down from 14.87 percent in the first quarter, according to the TWSE.

But foreign institutional investors made up 28.64 percent of the total trading volume in the April-June period, up 28.20 percent from a quarter earlier, the TWSE said.

Source: Focus Taiwan News Channel