TAIPEI, Oct 12 (Reuters) - Taiwan’s Finance Ministry on Monday said that its National Stabilisation Fund would no longer intervene to buy stocks, as the island’s bourse bounces back from the impact of the coronavirus pandemic earlier this year.
The fund began its market intervention in mid-March as stocks swooned. It was the seventh time it had been authorised to do so, the last time being in 2015.
The Finance Ministry said the fund had done its job in stabilising the market and giving investors confidence, noting the virus was under control in Taiwan and economy recovering, with loose monetary policy supporting stocks and the economy globally.
However, they would continue to keep an eye on virus developments and the global economic situation to decide whether intervention was needed again, the ministry added.
Taiwan’s stock market has risen around 8% so far this year, and closed up 0.5% on Monday.
Export-dependent Taiwan has weathered the pandemic far better than many of its neighbours - it currently has only 33 active cases - and its tech products have become highly sought after as people take to working from home around the world.
The central bank last month raised its 2020 forecast for gross domestic product (GDP) growth to 1.6% from 1.52% predicted in June, and said it saw next year’s growth at 3.28%. (Reporting by Jeanny Kao and Ben Blanchard; Editing by Alex Richardson)
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