Foreigners continue to purchase shares


Mon, Nov 22, 2004 - Page 10

Foreign institutional investors have continued to increase their purchases of Taiwanese stocks, boosting the market value of publicly listed companies on the local bourse by NT$296.705 billion (US$9.12 billion) last week, according to the Taiwan Stock Exchange Corp.

The combined market value of listed companies in Taiwan increased 2.21 percent from the previous week to NT$13.71 trillion last week due to the reweighting announcement by Morgan Stanley Capital International (MSCI) Inc.

Currently, Taiwanese companies have about 55 percent of their market value represented in MSCI indexes. The MSCI will raise that ratio to 75 percent at the close of trading on Nov. 30 and to 100 percent on May 31 next year.

Analysts predicted that the MSCI's first stage movement will help bring in foreign capital worth about US$7.3 billion for the domestic bourse on strong speculation that the benchmark TAIEX will continue climbing to 6,800 points in the coming month.

The TAIEX ended at 6,026.55 points on Friday. For the week, the index surged 109.39 points from the previous week.

Gainers outnumbered losers in the 20 top major industries last week, with the market value of the listed companies in the electronics industry gaining the most at 3.99 percent, while the market value of the listed companies in the tourism, rubber, finance and plastic industries also showed an increase of 1 percent.