Stabilization fund to not intervene despite Middle East conflict

Taipei, April 14 (CNA) The management committee of the National Financial Stabilization Fund has decided not to step in to support Taiwan's stock market despite disruptions caused by ongoing conflict in the Middle East, according to the Ministry of Finance (MOF).

In a statement Monday, the MOF said the committee decided not to intervene because of Taiwan's sound economic fundamentals and the government's price-stabilization measures that have offset a spike in crude oil prices.

Though the United States-Israeli war on Iran has sent ripples through global financial markets, the MOF said Taiwan's exports remained strong and many listed companies continued to report growth in sales and earnings, leaving the market on solid footing.

The NT$500 billion (US$15.75 billion) stabilization fund was set up in 2000 by the government to serve as a buffer against unexpected external factors that might disrupt local stock markets.

The fund withdrew from the market earlier this year on Jan. 12 after an intervention period lasting 279 days -- the longest on record -- to limit volatility caused by the Trump administration's tariff policies.

Since Jan. 12, the Taiex, the Taiwan Stock Exchange's benchmark index, has risen about 16 percent as of Monday, indicating the fund's withdrawal did not affect the market.

In the first quarter of this year, the stabilization fund disposed of some of the shares it bought during its latest intervention and cleared a net profit of NT$8.054 billion, the MOF said.

As of the end of March, the fund still held shares worth NT$3.56 billion and had unrealized gains of NT$1.273 billion, the MOF said.