TAIEX climbs 1.14% to four-month high on turnover of over NT$100 bil.
The China Post news staffThe weighted share price index of Taiwan Stock Exchange Corp. yesterday shot up 85.32 points, or 1.14 percent, to close at a four-month high of 7,570.45, with turnover reaching NT$103.266 billion, as hot money flowed into the local bourse on a spate of encouraging international factors, according to market sources.
September 13, 2012, 12:02 am TWN
The market opened high, and immediately soared past the resistance-level of 7,500 points on the bullish performance of financial shares and electronics stocks, with the turnover gaining steam on hectic trading on the two major categories as well as other types of stocks, soaring past the NT$100 billion mark for the first time in four months, the sources said.
Inspired by several pieces of encouraging news, such as Germany's court ruling on the European Stability Mechanism (ESM) bailout program, as well as reports on the U.S. Federal Reserve's consideration of a third round of quantitative easing (known QE3), international hot money started to flow into the local bourse, triggering buying sentiment and pushing up the turnover.
Market statistics show that institutional investors together posted an over-buying position of NT$5.05 billion amid the bullish sentiment.
Of the eight major categories of shares, electronics rallied 1.23 percent, financial shares surged 0.92 percent, while other categories such as plastics and textiles rose by over 1 percent.
In terms of electronics, Apple-associated shares such as those of Hon Hai Precision Industry Co., Foxconn Technology Co. Ltd., Catcher Technology Co. Ltd., and Largan Precision Co. Ltd. all rallied by 2.8 percent to 5 percent on reports regarding the iPhone 5 release.
HTC Corp. also saw its share price rally by over 6 percent on the launch of its new smartphone model.
TPK Holding Co., a touch panel maker, witnessed its listed stock price hit the 7-percent limit, while other major panel makers such as AU Optronics, Innolux Chimei Optronics, and Wintek Corp. soared by 4 percent, 3.9 percent and 3 percent, respectively.
The electronics category of shares alone accounted for as much as 73 percent of the local bourse's total turnover yesterday.
Meanwhile, financial shares commanded 5.6 percent of the aggregate turnover; the sector's rally was led by Hua Nan Financial, Fubon Financial, Cathay Financial and Mega Financial, whose share prices all soared by over 1 percent.
On another front, shares of major manufacturers in various traditional industries also a led rally of the traditional category of shares. Nan Ya Plastics, China Steel and Cheng Shin Tire, for instance, all saw their listed prices surge by over 2 percent, while Prince Construction, Runtex Construction, Hua Hsin Lihwa Electric Wire and Cable all rallied by over 3 percent.
Market observers expect the local bourse to maintain a bullish trend in the short term, with the weighted share price index to range between 7,500 and 7,700.
Whether or not the U.S. Federal Reserve will officially announce the QE3 program shortly will also affect the movement of the local bourse, observers said.
In related news, the New Taiwan dollar yesterday appreciated against the U.S. dollar by NT$0.046 to close at NT$29.669, the highest level since May 29, as traders took cues from a rising euro to add their holdings in the local currency, dealers said.
The strength of the euro, which rose to a four-month high against the U.S. dollar, reflected high hopes that the U.S. Federal Reserve will come up with further stimulus measures to boost the nation's economy, they said.