TAIEX recoups part of losses, vaulted by government funds
The China Post News Staff with CNATAIPEI, Taiwan -- Four major government funds were rumored to have stepped in near the end of yesterday's session to help the TAIEX recoup losses derived from foreign institutional investor sell-offs.
August 23, 2013, 12:01 am TWN
Foreign institutional investors yesterday for sixth consecutive day sold off Taiwan shares worth NT$10 billion amid lingering concerns over an early exit by the U.S. Federal Reserve from its stimulus measures.
Shares in Taiwan recovered some of the earlier losses on Thursday as bargain hunters turned active to pick up large-cap stocks, offsetting the impact from a weakening Wall Street overnight, dealers said.
Among the gaining market heavyweights, Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, and Hon Hai Precision Industry Co. which assembles iPhones and iPads for Apple Inc., benefited from the bargain hunting, dealers said.
However, market sentiment remained cautious about what the U.S. Federal Reserve will do next in regard to its monetary policy, which prevented the index from breaching the closing level of a session earlier, they added.
The weighted index closed down 18.27 points, or 0.23 percent, at 7,814.38, after moving between 7,737.33 and 7,825.56, on turnover of NT$90.40 billion (US$3.01 billion).
The market opened down 0.68 percent, and moved to the day's low in the wake of the losses posted by Wall Street overnight, which in turn was caused by the Fed releasing minutes showing its board members supported a tapering off of the current bond buying program, dealers said.
After the index fell below the 7,800-point mark, though, some investors resumed buying to prop up the broader market in a bid to take advantage of the losses seen in recent sessions, they added.