Taiwan shares close higher thanks to technical rebound
The China Post news staff and CNA
October 31, 2012, 12:22 am TWN
Shares on the Taiwan Stock Exchange staged a technical rebound yesterday to push the index back above the 7,100-point mark following seven consecutive losing sessions amid concerns over weakness in the domestic and global economy, dealers said.
The weighted index closed up 90.92 points, or 1.28 percent, at 7,182.59, after moving between 7,131.15 and 7,206.35, on turnover of NT$68.08 billion.
TAIEX 3rd-to-last in World
Despite yesterday's surge, Taiwan stocks gave a poor performance in October. As of yesterday, the TAIEX fell by the biggest margin compared to its global counterparts this month.
For the year, Taiwan stocks' performance was third-to-last in the world. From January up to yesterday, the TAIEX rose only 20 points, or 0.28 percent, better than Shanghai and Spain, the worst two performers which fell 6.39 percent and 9.78 percent, respectively, during the period.
Taiwan's poor performance was said to be the result of suffocating trade volume. Premier Sean Chen, however, said yesterday that wasn't necessarily the case.
"A low trade volume has become a phenomenon for the entire world," he said at the Legislative Yuan. "Relatively speaking, Taiwan's trade volume is not so low and is expected to rise sharply next year."
HTC to Test NT$200
Smartphone vendor HTC remained weak yesterday due to rising concerns over its sales. It closed down 7 percent, the maximum daily decline, at NT$204.50.
Yesterday, the firm's trade volume hit 3,996 units, surpassing that for Monday. Yet by noon, there were still 25,500 units worth of sell orders, indicating a selling spree may continue. Each stock unit is 1,000 shares. All eyes will be watching whether HTC drops below NT$200 today.
HTC yesterday launched phones powered by Microsoft's new Windows 8 operating system. Whether the company will make a comeback with the new Windows phones remains to be seen, analysts said.