Stocks rose on the last day of the year yesterday, leaving the TAIEX 32 percent higher over the year.
Chang Hwa Commercial Bank (
Taiwan Semiconductor Manufacturing Co (TSMC,
The TAIEX added 23.94, or 0.4 percent, to 5,890.69. Three stocks rose for every two that fell. The Taiwan futures index added 0.2 percent to 5,903.
Looking back at 2003, the TAIEX rose 1,438 points, or 32.3 percent, since the last trading day of the previous year. On Dec. 31 last year it closed at 4,452.45. The rise marked the best performance for the index since 1996, when it gained 34 percent.
A positive economic outlook and stronger demand are expected to boost Taiwan share prices in 2004 once the dust settles from the March presidential elections, analysts predict.
The benchmark index is seen reaching 7,000 points after a volatile year in which SARS, the Iraq war and heightened tensions with Beijing drove it to a low of 4,139.50 points in April.
Authorities have projected Taiwan's economy will grow 4.1 percent this year amid brisk exports and domestic business activities, up from an estimated 3.15 percent for 2003.
Bullish sentiment and strong foreign buying pushed the index to a 17-month high of 6,142.32 in November, but jitters over growing tensions with Beijing after President Chen Shui-bian (陳水扁) unveiled his plans for a controversial referendum later pushed the market into a consolidation phase.
"Strains on cross-strait relations will continue to exert pressure on the stock market before the elections as all politically sensitive issues will be raised during the campaign," said Bentham Hung, a fund manager of Fuh-Hwa Securities Investment and Trust (復華投信).
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