Taiwan market up following Dow index rise
June 4, 2014, 12:00 am TWN
TAIPEI--Shares in Taiwan closed higher Tuesday after fluctuations that hovered around the 9,100-point mark, following a rise on the Dow Jones Industrial Average the previous day.
The weighted index on the Taiwan Stock Exchange closed up 47.55 points, or 0.52 percent, at 9,123.46 points on turnover of NT$101.61 billion (US$3.39 billion).
The bourse opened at 9,106.61 points and fluctuated between 9,070.45 and 9,128.34 points.
Hua Nan Securities Chairman David Chu said that after the Dragon Boat Festival holiday a day earlier, when the local market was closed, Taiwan stocks went higher, triggered by rises of U.S., Japan and Hong Kong stocks, as well as foreign investment in weighted stocks.
Thanks to the foreign capital, stocks of chip maker Taiwan Semiconductor Manufacturing Co. (台積電), fabless IC designer MediaTek Inc. (聯發科) and switching power supply maker Delta Electronics (台達電子) all recorded notable growth, Chu said. "Overall, the atmosphere was good," he added.
However, he said although there is room for investors to generate profits through short-swing trading, the general conditions are still not clear enough. He advised investors to select stocks with caution.
Due to a corruption scandal in which Farglory Group (遠雄集團) Chairman Chao Teng-hsiung (趙藤雄) was detained and held incommunicado, stocks of Farglory Land Development Co. dropped Tuesday to NT$46.5 per share, or the maximum allowable 7 percent, from the previous close of NT$50.
Farglory is one of Taiwan's biggest real estate developers.
Delta Electronics rose by 5 percent to a new high of NT$200 following its launch of energy-efficient solutions for homes at the 2014 COMPUTEX Taipei computer trade show that opened earlier in the day.
The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.014 to close at NT$30.064.
Turnover totaled US$811 million during the trading session.
The greenback opened at NT$30.100, and moved between NT$29.990 and NT$30.109 before the close.