Net foreign fund outflow last month hit US$3.39
billion 1

The nation’s net foreign fund outflow hit US$3.39 billion last month, compared with a net foreign fund inflow of US$1.878 billion in June, Financial Supervisory Commission data showed.

Last month’s net outflow was the biggest since the outflow of US$4.71 billion in October last year, reflecting the weak confidence of jittery foreign institutional investors, as the US-China trade talks prompted them to move funds out of Taiwan.

Chinese institutional investors, on the other hand, reported a net fund inflow of US$2.7 million last month, the commission’s data showed.

Foreign investors dumped a net NT$12.73 billion (US$405.9 million) of local shares on the Taiwan Stock Exchange, but they purchased a net NT$6.07 billion shares on the Taipei Exchange, data showed.

Due to the large foreign fund outflow and the net selling in local equities, the New Taiwan dollar depreciated NT$0.07 against the US dollar last month, data showed.

Still, foreign institutional investors recorded a net fund inflow of US$8.32 billion in the first seven months of this year, and the commission said on Tuesday that it would monitor whether money was continuing to flow into foreign funds this month.

Taiwan has recorded foreign net fund inflows of US$205.84 billion since the government lifted a ban on foreign institutional investment in the local bourse at the end of 1990, the commission said.

Separately, the commission said that local shares are stable compared with neighboring peers, as many listed Taiwanese companies still offer solid fundamentals and good dividend yields.

In the first six months of this year, all listed companies reported an annual increase in combined revenue of 0.51 percent, it said.