War Disturbs Taiwan Stocks; March Securities Deposit Balance Remains 3rd Highest in History
Geopolitical tensions in the Middle East caused Taiwan's stock market to drop over 10% in March. However, the securities deposit balance, a gauge of retail investor confidence, remained robust at 3.92 trillion NTD (3rd highest ever), and trading volumes hit all-time highs.
📋 Article Processing Timeline
- 📰 Published: April 23, 2026 at 19:09
- 🔍 Collected: April 23, 2026 at 19:32 (22 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 20:51 (1h 19m after Collected)
Central News Agency
(CNA Reporter Pan Tzu-yu, Taipei, 23rd) Disturbed by the war in the Middle East, Taiwan stocks experienced volatile movements in March. However, Central Bank statistics show that the securities settlement deposit balance, known as the "wind vane of retail investor confidence," although dropping below the 4 trillion NTD mark to 3.9286 trillion NTD in March, still remains at the third-highest level in history.
The Central Bank released the financial conditions for March today. The annual growth rates of monetary aggregates M1B and M2 were 7.83% and 5.79%, respectively, primarily driven by an increase in the annual growth rates of loans and investments. The M1B annual growth rate continued to exceed M2, extending the "golden cross" pattern, indicating abundant market liquidity, which is favorable for the stock market.
However, the US-Iran related conflict that erupted in late February has not yet concluded. Geopolitical risks disrupted financial market sentiment, causing Taiwan stocks to plunge by 3,691.5 points, or 10.42%, in March.
Looking closely at stock market indicators, the securities settlement deposit balance, long considered the "wind vane of retail investor confidence," saw a significant decrease of 184.5 billion NTD in March, dropping to 3.9286 trillion NTD.
It is worth noting that despite the sharp drop in the March securities deposit balance below the 4 trillion NTD mark, it is still the third-highest in history. Looking at the 10-day average, it even hit a historical high. Furthermore, the margin trading balance in the stock market surged to 538.8 billion NTD in March, marking a new high since June 2000 (89th year of the Republic).
Yeh Sheng, Deputy Director of the Central Bank's Economic Research Department, explained that Taiwan stocks were disturbed by the Middle East war in March, moving volatilely. Especially on the last trading day of the month, the stock market fell heavily, causing the end-of-period securities deposit balance to significantly decrease compared to February. Overall, however, "retail investors still have a lot of confidence."
Observing the trading proportions in the centralized market, in March, individual investors accounted for 52.8%, domestic institutions for 11.2%, and foreign investors for 36%. Regarding transaction value, Yeh Sheng pointed out that the transaction value of domestic individual investors surged to 18.9 trillion NTD, setting a historical record, fully demonstrating how optimistic retail investors are about Taiwan stocks. Foreign investors also hit a historical high, reaching 12.9 trillion NTD.
Yeh Sheng stated that the transaction values of both domestic individuals and foreign investors hitting new highs is partly due to active trading, and on the other hand, because Taiwan stocks have risen to high levels. This momentum may continue into April; based on current data, the transaction value in April is expected to set another new high.
As for foreign currency deposits, which slightly decreased to 202 billion NTD in March, Yeh Sheng believes it may be related to the volatility of Taiwan stocks and foreign capital outflows. However, in absolute terms, a level above 200 billion is still considered high. (Editor: Yang Lan-hsuan) 1150423
Choose to stand with facts. Every sponsorship from you is the power to guard press freedom.
Download the CNA "First Hand News" APP to grasp the latest news instantly.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.
(CNA Reporter Pan Tzu-yu, Taipei, 23rd) Disturbed by the war in the Middle East, Taiwan stocks experienced volatile movements in March. However, Central Bank statistics show that the securities settlement deposit balance, known as the "wind vane of retail investor confidence," although dropping below the 4 trillion NTD mark to 3.9286 trillion NTD in March, still remains at the third-highest level in history.
The Central Bank released the financial conditions for March today. The annual growth rates of monetary aggregates M1B and M2 were 7.83% and 5.79%, respectively, primarily driven by an increase in the annual growth rates of loans and investments. The M1B annual growth rate continued to exceed M2, extending the "golden cross" pattern, indicating abundant market liquidity, which is favorable for the stock market.
However, the US-Iran related conflict that erupted in late February has not yet concluded. Geopolitical risks disrupted financial market sentiment, causing Taiwan stocks to plunge by 3,691.5 points, or 10.42%, in March.
Looking closely at stock market indicators, the securities settlement deposit balance, long considered the "wind vane of retail investor confidence," saw a significant decrease of 184.5 billion NTD in March, dropping to 3.9286 trillion NTD.
It is worth noting that despite the sharp drop in the March securities deposit balance below the 4 trillion NTD mark, it is still the third-highest in history. Looking at the 10-day average, it even hit a historical high. Furthermore, the margin trading balance in the stock market surged to 538.8 billion NTD in March, marking a new high since June 2000 (89th year of the Republic).
Yeh Sheng, Deputy Director of the Central Bank's Economic Research Department, explained that Taiwan stocks were disturbed by the Middle East war in March, moving volatilely. Especially on the last trading day of the month, the stock market fell heavily, causing the end-of-period securities deposit balance to significantly decrease compared to February. Overall, however, "retail investors still have a lot of confidence."
Observing the trading proportions in the centralized market, in March, individual investors accounted for 52.8%, domestic institutions for 11.2%, and foreign investors for 36%. Regarding transaction value, Yeh Sheng pointed out that the transaction value of domestic individual investors surged to 18.9 trillion NTD, setting a historical record, fully demonstrating how optimistic retail investors are about Taiwan stocks. Foreign investors also hit a historical high, reaching 12.9 trillion NTD.
Yeh Sheng stated that the transaction values of both domestic individuals and foreign investors hitting new highs is partly due to active trading, and on the other hand, because Taiwan stocks have risen to high levels. This momentum may continue into April; based on current data, the transaction value in April is expected to set another new high.
As for foreign currency deposits, which slightly decreased to 202 billion NTD in March, Yeh Sheng believes it may be related to the volatility of Taiwan stocks and foreign capital outflows. However, in absolute terms, a level above 200 billion is still considered high. (Editor: Yang Lan-hsuan) 1150423
Choose to stand with facts. Every sponsorship from you is the power to guard press freedom.
Download the CNA "First Hand News" APP to grasp the latest news instantly.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.