Volatility expected after lifting of day trading ban
By Ted Chen, The China Post
January 7, 2014, 12:14 am TWN
TAIPEI, Taiwan -- Yesterday marked the first session since the lifting of a ban on day trading in the Taiwan market, with investors bracing for extreme volatility throughout turbulent trading.
The TAIEX yesterday closed at 8,500 points, down 46.53 points, with intraday trading volume reaching NT$94.447 billion, below the NT$100 benchmark expected previously. Incidentally, in the first hour of yesterday's trading, trading volume quickly reached NT$35.8 billion, the highest seen in three months.
Investors showed up in droves, curiously monitoring stock tickers while discussing the newly allowed day trading transactions, however most remained tentative and few placed day trading orders, said brokerage companies.
Brokerage companies remarked that although the majority of more risk-averse retail traders shied away from day trading, well-endowed high rollers placed big bets in the over-the-counter market, causing composites of the Gretai 50 Index (富櫃50) including Medigen Biotechnology Co. (基亞), PharmaEngine (智擎) to be rocked by tremendous volatility.