The National Financial Stabilization Fund entered the market to buy shares in 2015 and sold shares in 2016 — Data and explanatory notes
2. Financial benefits: (all dollar amounts are in NT$)
(1)Net cash revenues from disposal of shares $ 20.88 billion.
(2)Cost of shares acquisition: $19.658 billion (excluding a financing cost of $0.09 billion).
(3)Net revenues from the share transactions: $1.222 billion.
(4) The Fund has received $0.095 billion in dividend as a result of this share purchase. Total net income: $1.317 billion. Deducting financing costs of $0.091 billion and transaction costs of $0.015 billion leaves a total net income of $1.211billion.
3.Benefits of policy execution:
(1)The policy effects of share purchase: The weighted average stock index was at 7675 points on August 25, 2015 when we started buying shares.We continued to buy shares from time to time until April 12, 2016, at which time the stock index was at 8531 points, a rise of 856 points, or 11.15%. This fully shows that the Fund has exerted its influence and achieved its charge to stabilize the market.
(2)How selling shares was executed: Considering market stability and liquidity, we started selling shares on hand on April 13, 2016, and we continued to sell shares from time to time until September 21, 2016, when we disposed of all shares that we had bought. The stock market had risen steadily during the period of our share disposal.