Stock investors earn NT$850,000 on average in booming Year of Rabbit

Taipei, Feb. 5 (CNA) Investors in the local stock market pocketed an average of NT$850,000 (US$27,092) in the Year of the Rabbit after the Taiex ended up 0.20 percent on Monday, the last trading session of the Lunar year.

Trading in the Year of the Rabbit began last year on Jan. 30, and since then, the Taiex, the benchmark weighted index on the Taiwan Stock Exchange (TWSE), soared 3,163.14 points, or 21.18 percent, to close at 18,096.07, boosting market capitalization by NT$10.76 trillion to NT$57.52 trillion.

Based on there being 12.51 million investors at the end of December, the average amount earned totaled around NT$850,000.

This was a marked improvement from the Year of the Tiger. Trading that year began on Feb. 7, 2022, and ran through Jan. 17, 2023, and during that time the Taiex tumbled 2,741.47 points, or 15.51 percent, amid geopolitical tensions and an aggressive rate hike cycle by the U.S. Federal Reserve.

The market cap was sent down by NT$8.08 trillion and investors suffered an average of NT$670,000 in losses.

The Taiex remained weak during most of the first half of 2023, before picking up amid a frenzy about artificial intelligence development. The momentum continued to accelerate, particularly in the last two months of the year, and continued into January, sparked by hopes the Fed would start to cut interest rates amid moderating inflation.

In addition, buying was sparked by a rosy picture painted by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which said in mid-January that its sales are forecast to rise 21-26 percent in 2024, beating an earlier market estimate of a 20 percent increase. TSMC is the most heavily weighted stock in the local market.

Local stock market trading will resume on Feb. 15, the first trading session in the Year of the Dragon, after the Lunar New Year holiday.

Liao Chien-yu (廖健佑), an analyst with Capital Investment Management Corp., said during the New Year holiday, Washington is scheduled to release its January consumer price index on Feb. 13 (U.S. time). As it is one of the indications favored by the Fed when evaluating how to adjust its monetary policy, it could move the U.S. markets and subsequently influence the Taiwan market.

In addition, MSCI Inc., a global index provider, is expected to announce the results of its quarterly index review in the early morning of Feb. 13 (Taipei time) and any adjustments are worth watching, Liao said.

Liao said he expected AI-related stocks will attract buying amid continued enthusiasm toward the emerging technology.