Print

Mail

wiki links

Shares bounce back after early losses on political worries

Share prices closed 1.25 percent higher yesterday, bouncing back after early losses on continued political concerns over rallies conducted by supporters and opponents of President Chen Shui-bian (陳水扁), dealers said.

The TAIEX was up 82.22 points at the day's peak of 6,681.09, recouping all of Thursday's losses. Turnover was NT$56.65 billion (US$1.72 billion).

Risers led decliners 823 to 243, with 166 stocks unchanged.

The financial subindex led the gains yesterday, rising 2.2 percent.

Taishin Financial Holding (台新金控) rose 4.9 percent to NT$16.05, and was the most heavily traded company on the main board, with 52 million shares traded.

The technology subindex rose 1.3 percent overall, most likely on buying by foreign investors, traders said.

Any confrontation between the different groups of demonstrators will affect the stock market next week, dealers said, while corporate and economic fundamentals will still be crucial in the long run.

Shares are expected to meet upward resistance at around 6,800 points next week.

For the week to yesterday, the weighted index closed down 12.02 points or 0.18 percent after a 0.63 percent increase the previous week.

Average daily turnover stood at NT$67.61 billion, compared with NT$72.90 billion.

While local investors take to the sell-side, foreign investors have returned to the market.

Jacky Tam, an analyst at Yuan-ta Core Pacific Capital Management (元大京華投顧), said foreign investors favor the consumer electronic segment.
This story has been viewed 1252 times.