Sun, Dec 08, 2019 - Page 14 News List

TAIEX rises amid thin turnover

CONSOLIDATION:One analyst said that with foreign institutional investors stepping away for the holidays as the index nears technical resistance, a breakthrough is unlikely

Staff writer, with CNA and AFP

Certain old economy stocks benefited from rotational buying throughout the session to provide additional support to the broader market, the dealers said.

Among the gaining old economy stocks, Asia Cement Corp (亞洲水泥) rose 1.42 percent to close at NT$46.45, food brand Uni-President Enterprises Corp (統一企業) added 1.25 percent to end at NT$72.70 and Formosa Plastics Corp (台灣塑膠) grew 0.83 percent to end at NT$97.20.

In the financial sector, which closed down 0.03 percent, Cathay Financial Holding Co (國泰金控) lost 0.6 percent to end at NT$41.25 and Fubon Financial Holding Co (富邦金控) fell 0.11 percent to close at NT$45.45.

“Today’s thin turnover also reflected continued concern over the trade friction between Washington and Beijing, as both sides have given mixed signals about their talks,” Hsu said.

Foreign institutional investors bought a net NT$2.75 billion of shares on the main board, Taiwan Stock Exchange data showed.

Elsewhere in Asia on Friday, optimism over the China-US trade talks kept markets buoyant, with investors betting the two would eventually sign a partial deal, although they remain nervous as next week’s deadline for fresh tariffs draws closer.

Sentiment across trading floors ebbed and flowed throughout the week as observers tried to gauge the state of play in the long-running negotiations, with both sides making positive, then negative comments on the outlook.

US President Donald Trump caused upheaval by saying that he would be happy if a pact was not signed until after US elections in November next year; reimposed tariffs on Argentina and Brazil; and threatened France with 100 percent levies over a digital tax.

However, talks appeared back on track after reports that US officials were hopeful an agreement would be signed, while Trump on Thursday said that things were “moving along well.”

The latest soundings allowed investors to return to the buying that has helped propel global markets for weeks.

China on Friday offered its latest olive branch, saying that it would waive tariffs on “some” imports of key US soybean and pork imports, providing extra support to traders.

Hong Kong’s Hang Seng on Friday climbed 281.33 points, or 1.1 percent, to 26,498.37, gaining 0.6 percent from a close of 26,346.49 on Nov. 29.

The Shanghai Composite on Friday rose 12.55 points, or 0.4 percent, to 2,912.01, a surge of 1.4 percent from 2,871.98 a week earlier.

Tokyo’s Nikkei 225 on Friday closed up 54.31 points, or 0.2 percent, at 23,354.40, rising 0.3 percent from 23,293.91 on Nov. 29.

Sydney added 0.4 percent, while Singapore, Wellington, Manila, Bangkok and Jakarta each gained 0.2 percent and Mumbai slipped 0.4 percent

Seoul’s KOSPI on Friday jumped 21.11 points, or 1 percent, to 2,081.85, but slid 0.3 percent from 2,087.96 a week earlier.

“It’s been rather a strange week for global equity markets,” CMC Markets UK analyst Michael Hewson said. “Moving from an expectation that we could well see some movement on trade between the US and China in the next couple of weeks, to the prospect that any solution may well not happen until after the next [US] presidential election.”

“As a result of these mixed signals, investors appear to be taking a more cautious view as to what may happen next,” he added.

Traders remain on edge before Sunday next week — when the US is scheduled to impose tariffs on more China goods.

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