Local market closes higher following long holiday
CNATAIPEI, Taiwan -- Taiwan shares closed higher Monday as investors, returning from the Mid-Autumn Festival holiday, reacted positively to the United States Federal Reserve's decision to maintain its monetary stimulus scheme, dealers said.
September 24, 2013, 12:17 am TWN
Global markets generally rose after the Fed announced its decision on Thursday, Sept. 19, and the first day of trading in Taiwan since the announcement reflected the positive mood, according to a statement from President Securities Corp.
New trading rules launched on Monday that relaxed restrictions on short selling also lifted investors' spirits because they are expected to generate higher turnover and improve the performance of small cap stocks, the brokerage said.
The new rules allow investors to short roughly 1,200 specified stocks even if the stock's price falls below its closing price from the previous trading session. Only 150 stocks could be traded under those conditions previously.
Jordan Chen, chief investment officer at Schroder Taiwan, cautioned that uncertainty will continue to weigh on the market because the Fed intends to review its easing measures every six weeks.
The weighted index closed up 83.65 points, or 1.01 percent, at 8,292.83 on turnover of NT$85.29 billion (US$2.88 billion), after moving between 8,221.34 and 8,293.03.
Electronics heavyweight Taiwan Semiconductor Manufacturing Co. rose 2.43 percent to close at NT$105.50, and United Microelectronics Corp. rose 4.13 percent to NT$12.60 to support the market's rally.
Catcher Technology Co., a casing supplier for consumer electronics products, saw its share price close 2.26 percent higher at NT$158.50 on a report by Barclays, which expects the company to receive orders from Samsung Electronics Co. and Apple Inc. next year.
The financial sub-index rose 1.33 percent Monday after hitting a two-year high in mid-session on comments made by Financial Supervisory Commission head Tseng Ming-chung.
Tseng said he was not inclined to increase the business turnover tax on financial institutions from the current 2 percent to 5 percent, as has been proposed by some lawmakers.
Taiwan Life Insurance Co. surged 6.82 percent to NT$22.7, Mega Financial Holding Co. rose 2.49 percent to close at NT$24.7, and CTBC Financial Holding Co. gained 1.28 percent to finish at NT$19.8.