Stocks finally broke the 7,000-point barrier to close at their highest level in three-and-a-half-years yesterday, climbing on hopes of an improving economic situation no matter who wins the March 20 presidential election, analysts said.
The TAIEX surged 101.93 points, or 1.47 percent, to 7,034.10, led by gains in financial, electronics and flat-panel stocks as well as domestic-demand related shares such as the raw materials sector.
PHOTO: SEAN CHAO, TAIPEI TIMES
Shares of Formosa Petrochemical Corp wowed the local bourse by sprinting NT$3, or 5.5 percent, to NT$57.5. Nan Ya Plastics Corp, the nation's biggest maker of plastics, also gained NT$1.5, or 3.3 percent, to NT$47.5.
Flat panel display maker Chunghwa Picture Tubes Ltd added 2.7 percent to NT$22.7, Quanta Display Inc rose 2.9 percent to NT$25 and AU Optronics Corp edged 0.8 percent higher to NT$60.
The turnover yesterday was NT$226.55 billion, a slight decrease from NT$239.9 billion the previous day. Foreign investors yesterday pumped NT$10.8 billion into local bourses, compared to a record NT$19.4 billion on Tuesday, according to the Taiwan Stock Exchange Corp.
Jones Wang (
As the TAIEX has rocketed up by 1,144 points, or 20 percent, since trading started on Jan. 27 after the Lunar New Year holidays, some investors are worried that the market may be overheating.
But Wang said the market's recent rise is in line with his expectations, adding that the turnover -- which has consecutively hit above NT$200 billion for the last four days -- was not a concern.
"We should begin to worry [about possible overheating] if the turnover hits NT$260 billion," he said.
Another analyst believes the red-hot market will continue for at least two or three years.
"I believe the TAIEX will roar at full thrust to 10,000 points in the next two years," said Lu Tsung-yao (呂宗耀), former investment director for the Ta Chong Finance Group, at a press conference yesterday.
"I didn't see any factors that will reverse the rising curve of the TAIEX," he said.
Like many market experts, Lu said that the coming presidential election will only depress the market for a short period. The biggest concern hinges on whther or not US Federal Reserve Chairman Alan Greenspan decides to raise US interest rates, he said.
Aside from interest-rate concerns, Lu said there will be a large-scale circulation of funds as the US dollar continues to depreciate against the euro, Chinese yuan and Japanese yen, which will help induce more foreign cash into the market.
Hsieh Chin-ho (
China Steel Corp yesterday lost 0.3 percent to close at NT$34.7 on a disappointing earnings report for last month.
The US government has signed defense cooperation agreements with Japan and the Philippines to boost the deterrence capabilities of countries in the first island chain, a report by the National Security Bureau (NSB) showed. The main countries on the first island chain include the two nations and Taiwan. The bureau is to present the report at a meeting of the legislature’s Foreign Affairs and National Defense Committee tomorrow. The US military has deployed Typhon missile systems to Japan’s Yamaguchi Prefecture and Zambales province in the Philippines during their joint military exercises. It has also installed NMESIS anti-ship systems in Japan’s Okinawa
TRAGEDY STRIKES TAIPEI: The suspect died after falling off a building after he threw smoke grenades into Taipei Main Station and went on a killing spree in Zhongshan A 27-year-old suspect allegedly threw smoke grenades in Taipei Main Station and then proceeded to Zhongshan MRT Station in a random killing spree that resulted in the death of the suspect and two other civilians, and seven injured, including one in critical condition, as of press time last night. The suspect, identified as a man surnamed Chang Wen (張文), allegedly began the attack at Taipei Main Station, the Taipei Fire Department said, adding that it received a report at 5:24pm that smoke grenades had been thrown in the station. One man in his 50s was rushed to hospital after a cardiac arrest
PUBLIC SAFETY: The premier said that security would be tightened in transport hubs, while President Lai commended the public for their bravery The government is to deploy more police, including rapid response units, in crowded public areas to ensure a swift response to any threats, President William Lai (賴清德) said yesterday after a knife attack killed three people and injured 11 in Taipei the previous day. Lai made the remarks following a briefing by the National Police Agency on the progress of the investigation, saying that the attack underscored the importance of cooperation in public security between the central and local governments. The attack unfolded in the early evening on Friday around Taipei Main Station’s M7 exit and later near the Taipei MRT’s Zhongshan
ON ALERT: Taiwan’s partners would issue warnings if China attempted to use Interpol to target Taiwanese, and the global body has mechanisms to prevent it, an official said China has stationed two to four people specializing in Taiwan affairs at its embassies in several democratic countries to monitor and harass Taiwanese, actions that the host nations would not tolerate, National Security Bureau (NSB) Director-General Tsai Ming-yen (蔡明彥) said yesterday. Tsai made the comments at a meeting of the legislature’s Foreign Affairs and National Defense Committee, which asked him and Minister of National Defense Wellington Koo (顧立雄) to report on potential conflicts in the Taiwan Strait and military preparedness. Democratic Progressive Party (DPP) Legislator Michelle Lin (林楚茵) expressed concern that Beijing has posted personnel from China’s Taiwan Affairs Office to its
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