News Videos
International Edition


May 30, 2017

Breaking News, World News and Taiwan News.
About Us
Contact Us

Local market boosted by strong liquidity

TAIPEI, Taiwan -- Shares in Taiwan got a boost from an injection of liquidity to close above the 8,900-point mark Wednesday as foreign investors continued to move funds into the country, dealers said.

Large-cap shares and high-priced stocks, in particular smartphone camera lens supplier Largan Precision Co., continued to ride the wave of high liquidity, moving higher to lift the index, they said.

Market sentiment also improved as investors expect the U.S. Federal Reserve to pump more funds into the market, which is expected to give another boost to regional equity markets on spill-over effects, dealers said.

The weighted index on the Taiwan Stock Exchange ended up 32.30 points, or 0.36 percent, at 8,905.45, after moving between 8,883.14 and 8,922.79, on turnover of NT$105.54 billion (US$3.48 billion).

The market opened up 0.38 percent to breach 8,900 points and moved to the day's high following gains posted on Wall Street overnight after the U.S. reported an improvement in manufacturing activity for March, dealers said.

As technical resistance after the 8,900-point remained strong, the index fell below that level at one point, but then steamed ahead with buying focusing on electronics heavyweights to vault the index past that level at the close, they said.

"Judging from a strong showing of electronics heavyweights, I suspect foreign institutional investors stayed on the buy side. The local market was largely driven by liquidity," Hua Nan Securities analyst Kevin Su said.

Su said a rising Taiwan dollar was evidence that foreign investors moved more funds into the local market, betting that the Fed will maintain ample liquidity after the U.S. central bank chair Janet Yellen said Monday that the bank will continue to support the economy for some time to come.

According to the TWSE, foreign institutional investors bought a net NT$9.36 billion in local shares on the main board Wednesday.

Sentiments of Foreign Investors Turn Rosy

"It seemed that foreign investors have become more willing to buy for the moment," Su said.

Among the high-tech stocks that gained ground, Largan (大立光) rose 3.04 percent to close at NT$1,525.00 and retain the title as the most expensive stock in the local market amid optimism over its earnings outlook.

On the over-the-counter market, Hermes Microvision Inc. (漢微科), one of Taiwan's leading semiconductor inspection tool and equipment suppliers, gained 7 percent, the maximum daily increase, to end at NT$1,395.00 after Barclays Capital raised its target price on the stock.

Back on the main exchange, Taiwan Semiconductor Manufacturing Co. (台積電), the most heavily weighted stock in the local market, rose 0.42 percent to close at NT$120.00, while flat panel supplier AU Optronics Corp. (友達光電) added 1.82 percent to end at NT$11.20.

While the bellwether electronics sector posted gains, closing up 0.66 percent, shares in the old economy sector appeared mixed, dealers said.

Formosa Plastics Corp. (台塑企業) gained 0.66 percent to end at NT$76.80, while Wei Chuan Foods Corp. (味全食品) fell 0.55 percent to close at NT$45.55 and Taiwan Cement Corp. (台灣水泥) shed 1.57 percent to end at NT$47.05.

"After the gains in the past few sessions, market sentiment has improved a lot and the market has become technically healthier," Su said.

"Even if the market faces some corrections, an uptrend driven by liquidity remains intact," Su said.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive our promos
 Respond to this email
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search