Foreign institutional investors post large net fund outflows in March

Taipei, April 8 (CNA) Foreign institutional investors in Taiwan recorded a substantial net outflow of funds in March as the war in the Middle East roiled global financial markets, according to Financial Supervisory Commission (FSC) data.

Foreign institutional investors had a net fund outflow of US$3.055 billion in March, reversing a net fund inflow of US$11.51 billion in February, FSC data showed.

Taiwan's stock market was hurt in March by the war launched by the U.S. and Israel against Iran at the end of February, setting the stage for fund outflows by foreign institutional investors, the FSC said.

In March alone, the Taiex, the Taiwan Stock Exchange's benchmark index, plunged 6.17 percent after foreign institutional investors sold a net NT$968.21 billion (US$30.45 billion) in shares.

In the first three months of 2026, however, foreign institutional investors recorded a net fund inflow of US$17.852 billion, the FSC said.

In addition, foreign institutional investors have accumulated a net fund inflow of US$338.012 billion since Taiwan's government lifted a ban on foreign institutional investments in the local equity market at the end of 1990, according to FSC data.