Taiwan Stock Exchange Corp (TWSE, 台灣證券交易所) president Michael Lin (林火燈) said yesterday that he remains upbeat about the performance of the local equity market this year as the government prepares more stimulus measures for the year ahead.
The bourse will also be boosted by the moderate exit of the US Federal Reserve from its bond-buying program, an indication that the world’s biggest economy is on its way to recovery and a boon for global equity markets, Lin said.
Shares in Taiwan closed lower yesterday as market sentiment was dampened by a dive on Wall Street overnight amid renewed fears that the US Federal Reserve will speed up the pace of tapering its monthly bond-buying program.
The TAIEX ended down 18.06 points, or 0.21 percent, at 8,548.14 points, on a turnover of NT$82.96 billion (US$2.77 billion).
The benchmark index rose 11.85 percent last year from a year earlier, trailing in the region behind only the Nikkei 225 index’s increase of nearly 57 percent.
Lin said the performance shows that last year was a good year for the main bourse, and the relaxation of day trading rules earlier this month is expected to make the equity market more active as investors become more willing to trade.
In addition, the TWSE is mulling plans to cut short the matching time for stock trading from the current 15 seconds to five seconds in the second half of the year, as well as further strengthening market information disclosures later in the year, Lin said.
As global demand will pick up on a US recovery and improvement in European fundamentals to lift Taiwan’s export-oriented economy, the government has put growth in Taiwan’s GDP at 2.31 percent this year, up from the 1.74 percent increase estimated for last year.
Meanwhile, the TWSE said MStar Semiconductor Inc (晨星半導體) will be removed from the FTSE TWSE Taiwan 50 Index on Thursday as the integrated circuit designer is scheduled to be fully brought under MediaTek Inc’s (聯發科) umbrella in a merger deal.
MStar is scheduled to be delisted from the TWSE on Feb. 1.
The TWSE said it would add DRAM supplier Inotera Memories Inc (華亞科技) into the Taiwan 50 due to the significant gains in its share price in the past year.