Food shares undergo reshuffling as investors weigh untainted firms
By Ted Chen , The China PostTAIPEI, Taiwan -- Amid the cooking oil scare and the subsequent dethroning of entrenched industry leaders including Tatung Chang Chi Foodstuff Factory Co (大統長基) and Flavor Full Food Inc (富味鄉), the market yesterday saw a rally in the related foodstuff making sector, led by tremendous intraday gains recorded by Fwusow Industry Co (福壽).
October 29, 2013, 12:22 am TWN
Propelled by the rush of buy orders for shares of cooking oil making companies, shares of food companies recorded a sector-wide 1.7 percent gain. As one of Taiwan's few remaining producer of sesame oil of notable scale yet untouched by the ongoing cooking oil scare, shares of Fwusow yesterday surged to NT$16.45, or 7 percent, the maximum degree of fluctuation allowed in the Taiwan market. At the end of trading, investors accumulated buy orders for over 2.5 million Fwusow shares, according to reports.
Concurrently, shares of Taisun (泰山), and FOPCO (福懋油) also rose to their respected 7 percent maximum intraday gain, with Dachan (大成), TTET Union Co (大統益) and Uni-President (統一) surging by 2 percent at the end of yesterday's trading.
Incidentally, investors had previously rushed to dump shares of TTET Union Co, as the company's names bears close resemblance to the beleaguered Tatung Chang Chi Foodstuff Factory Co in Chinese.
Similarly, shares of Lianhua Foods Corporation, a leading snack foods maker yesterday rebounded, gaining 2.4 percent while retaking the NT$40 mark. Shares of Lianhua had previously tumbled on reports that it had sourced oil from two unscrupulous companies.
Market commentators attributed yesterday's rally in the food sector to the arrival of the traditional high demand season for cooking oils, and the bolstering of consumer confidence following the government's announcement that a number of well-known companies passed their good manufacturing process (GMP) certification reassessment with flying colors.