The TAIEX rebounded yesterday to close up 1.01 percent in the first trading session after the nine-in-one elections, buoyed by tourism-related shares and shares in firms with links to Apple Inc, as well as reduced political uncertainty.
The tourism sub-index saw the biggest gains as it rose 3.15 percent, with shares of Phoenix Tours International Inc (鳳凰旅遊) jumping 7.51 percent, Lion Travel Service Co (雄獅旅遊) rising 4.53 percent and Formosa International Hotels Corp (晶華酒店) increasing 2.51 percent.
“Tourism-related shares were boosted by Kaohsiung mayor-elect Han Kuo-yu’s (韓國瑜) campaign pledge to promote tourism,” Hua Nan Securities Investment Management Co (華南投顧) chairman David Chu (儲祥生) told the Taipei Times by telephone.
“However, given that Han has not announced any specific policies, the rise, which is not significant today, might not be sustained despite the optimistic sentiment,” Chu said.
The TAIEX opened higher and quickly rose 180 points to reach 9,847 points at 9:11am, but retreated later and closed at 9,765.36 points, 98.06 points higher than Friday’s close, on turnover of NT$88.52 billion (US$2.87 billion), Taiwan Stock Exchange (TWSE) data showed.
All sub-indices advanced with the exception of plastic, telecom, oil and electricity, exchange data showed.
Companies involved in offshore wind farm projects saw their shares drop due to the passage of referendum #16, which asked: “Do you agree that subparagraph 1, Article 95 of the Electricity Act (電業法), which reads: ‘Nuclear-energy-based power-generating facilities shall wholly stop running by 2025,’ should be abolished?”
Shares of Century Iron & Steel Industrial Co (世紀鋼構), the supplier of tower and marine construction, lost 3.34 percent to NT$72.3; Swancor Holding Co Ltd (上緯), a wind farm developer and blade supplier, dropped 5.59 percent to NT$67.5; and shipbuilder CSBC Corp Taiwan (台灣國際造船) fell 5.31 percent to NT$30.3. China Steel Corp (中鋼) rose 0.42 percent to NT$23.95.
“These shares were dragged down by investors’ pessimistic sentiment, but this is just temporary as the government is still pushing ahead with its green-energy policy,” Chu said.
Among Taiwanese suppliers to Apple, Taiwan Semiconductor Manufacturing Co (台積電), smartphone camera lens supplier Largan Precision Co (大立光) and iPhone assembler Hon Hai Precision Industry Co (鴻海精密) saw their shares rise 2.06, 4.23 and 1.43 percent respectively.
“The TAIEX advanced today as political uncertainty is less a concern for investors,” Capital Investment Trust Corp (群益投信) fund manager Ryan Shen (沈萬鈞) said by telephone.
However, yesterday’s market turnover, while higher than Friday’s NT$77.56 billion, was still lower than the average, he said.
“Investors are still hesitating and observing,” he said.
A scheduled meeting between US President Donald Trump and Chinese President Xi Jinping (習近平) later this week at the G20 summit is likely to be a key factor in the movement of local equities, as any agreement they might reach would help reduce the trade dispute between their nations, Chu and Shen said.
The TAIEX’s rise followed its regional peers, with South Korea’s KOSPI expanding 1.24 percent, Japan’s Nikkei 225 increasing 0.76 percent and Hong Kong’s Hang Seng Index rising 1.73 percent, although the Shanghai Composite Index slipped 0.14 percent.
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