Sat, Apr 04, 2009 - Page 11 News List

TAIEX gains after Wall Street rally on G20 optimism

AFP , TAIPEI

The TAIEX closed up 1.02 percent yesterday after a Wall Street rally amid optimism over concerted efforts at the G20 summit to boost the global economy, dealers said.

The weighted index rose 55.85 points to 5,529.63 on turnover of NT$161.96 billion (US$4.9 billion).

Gainers outnumbered losers by 1,320 to 699, with 154 stocks unchanged.

The market opened higher as investors took cues from the Wall Street gains and the momentum continued until the end of the session with financial stocks in focus, dealers said.

“Buying in the financial sector largely came from foreign institutional investors on short covering. The sector had been oversold recently,” Capital Securities (群益證券) analyst Chen Yu-yu (陳育娛) said.

Chen said efforts to rescue the world’s economy were encouraging.

“The global financial system is expected to become the most visible gainer as the economy stages a comeback,” Chen said.

He said investors also had high hopes that Taiwan and China would set up a mechanism soon to accelerate cross strait financial exchanges.

“The market is awash with funds as a stronger Taiwan dollar attracts foreign money. The high liquidity is expected to keep lending support to the index,” Chen said.

For the week to yesterday, the weighted index rose 138.93 points or 2.58 percent after an 8.65 percent increase a week earlier.

Average daily turnover stood at NT$122.78 billion, compared with NT$133.74 billion in the previous week.

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