Share prices ended the day higher yesterday, with the TAIEX gaining 40.67 points to close at 6,213.56 as the government tapped a NT$500 billion fund to support share prices after the TAIEX had its biggest two-day loss in two-and-half years.
The bourse opened at 6,265.74 and fluctuated between 6,265.74 and 6,100.83 during trading.
A total of 6.54 billion shares changed hands on a market turnover of NT$142.88 billion, a decrease from the previous trading session, which saw 10.15 billion stocks traded on a market turnover of NT$249.14 billion.
"The government has showed determination to curb irrational selling," said Jerry Chen, who helps oversee US$640 million of Taiwanese equities at First Global Investment Trust Co (
"That calmed investors after two days of panic selling," he said.
The rise was also led by Taiwan Semiconductor Manufacturing Corp (TSMC,
TSMC plans to buy as many as 300 million shares, or 1.5 percent of outstanding stock. Its closest rival, UMC, may buy 360 million shares, or 2.2 percent of its stock. The combined value of the purchases at yesterday's closing prices would be about US$797 million.
TSMC yesterday gained NT$3 to NT$58, while UMC added NT$0.9 to NT$28.8.
Shares in the two companies have fallen about 13 percent this week, as the stock market plunged after the disputed presidential election. Both chipmakers had more than US$2.5 billion on hand as the end of last year and repurchased stock after Minister of Finance Lin Chuan (
Overall, two of the eight major stock categories posted gains, with electrical shares moving up the most at 1.9 percent, followed by plastics and chemical shares at 0.4 percent.
Four major stock categories posted losses, with construction stocks moving down the most at 5.9 percent, followed by foodstuff stocks at 5.8 percent, cement stocks at 1.9 percent and textile issues at 1.7 percent.
Pulp and paper issues, and bank and insurance shares closed even.
Losers outnumbered gainers 464 to 396, with 115 stocks remaining unchanged.
However, traders such as Jerry Ho at International Bank of Taipei (
The post-election stock-market plunge may prove to be no more than an interruption to a rally. Fund managers such as Thomas Gerhardt, who helps oversee US$5.5 billion at DWS Investment Gmbh in Frankfurt, said Taiwanese shares are worth buying after the decline.
"Most of the bad news is already priced in," said Gerhardt, whose holdings include TSMC.
"We are willing to buy shares we like at the current levels. In four weeks' time, this will all be history," he said.
RSS