The stock market rallied yesterday by nearly 4 percent as investors snatched up financial and construction stocks, which are expected to benefit from president-elect Ma Ying-jeou's (
The TAIEX rose by 3.99 percent, or 340.36 points, to close at 8,865.35 points after hitting a high of 9,049.23 earlier yesterday. Turnover was NT$270.87 billion (US$8.83 billion), up from Friday's NT$170 billion. Overseas fund managers invested heavily, buying a net NT$57.91 billion of local stocks.
The rally prompted the NT dollar to appreciate NT$0.321 to NT$30.229 against the greenback, with turnover hitting an all-time high of US$5 billion.
"Financial and construction shares are favored by investors because they are expecting Ma's campaign promises to boost [companies in those sectors]. Tech shares are lagging behind," said Andrew Teng (
Most financial service providers saw their stock prices increase by percentages approaching the daily limit, led by Cathay Financial Holding Co (國泰金控), which advanced 6.96 percent to NT$87.6. Taishin Financial Holding Co Ltd (台新金控), the nation's third-largest financial service provider, rose 6.81 percent to NT$15.55.
Financial companies could benefit from improving domestic consumption and recent approval from the government to invest in Chinese banks, Teng said.
Peter Kurz, an analyst with Citi's local branch, said in a report released on Sunday that investors should target laggard banks and asset plays.
"First Commercial Bank (
However, Teng said investors should be cautious about buying financial shares. He cited mounting risk, limited upside and imminent profit-taking and added that the recent rally in financial shares had started several trading days before the election.
Construction shares were also some of the biggest winners yesterday, with leading stocks approaching the 7 percent daily limit. Shining Building Business Co Ltd (鄉林建設) and Farglory Land Development Co Ltd (遠雄建設) advanced 6.96 percent and 6.78 percent to NT$95.3 and NT$104 respectively.
Ma's plan to allow Chinese to invest in the property market could see prices for upscale housing increase by 20 percent and those for commercial offices surge by 30 percent by the end of the year, said Victor Chang (張欣民), an executive at US-based real estate agency Electronics Realty Associates Inc.
Kurz said many investors had held off until after the election, despite clear signs of a Ma victory.
"We see initial upside to 9,500 and maintain our 12,000 year-end target," he said.
Financial, airline and construction industries would be the biggest beneficiaries of Ma's policies, he said.
Eva Airways Corp (
The Ministry of the Interior (MOI) is to tighten rules for candidates running for public office, requiring them to declare that they do not hold a Chinese household registration or passport, and that they possess no other foreign citizenship. The requirement was set out in a draft amendment to the Enforcement Rules of the Public Officials Election and Recall Act (公職人員選舉罷免法 ) released by the ministry on Thursday. Under the proposal, candidates would need to make the declaration when submitting their registration forms, which would be published in the official election bulletin. The move follows the removal of several elected officials who were
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
COGNITIVE WARFARE: Chinese fishing boats transmitting fake identification signals are meant to test Taiwan’s responses to different kinds of perceived incursions, a report said Chinese vessels are transmitting fake signals in Taiwan’s waters as a form of cognitive warfare, testing Taipei’s responses to various types of incursions, a report by the Institute for the Study of War said on Friday. Several Chinese fishing vessels transmitted fake automatic identification system (AIS) signals in Taiwan’s waters last month, with one mimicking a Russian warship and another impersonating a Chinese law enforcement vessel, the report said. Citing data from Starboard Maritime Intelligence, the report said that throughout August and last month, the Chinese fishing boat Minshiyu 06718 (閩獅漁06718) sailed through the Taiwan Strait while intermittently transmitting its own AIS
CHINESE INFILTRATION: Medical logistics is a lifeline during wartime and the reported CCP links of a major logistics company present a national security threat, an expert said The government would bolster its security check system to prevent China from infiltrating the nation’s medical cold chain, a national security official said yesterday. The official, who wished to stay anonymous, made the remarks after the Chinese-language magazine Mirror Media (鏡周刊) reported that Pharma Logistics (嘉里醫藥物流) is in charge of the medical logistics of about half of the nation’s major hospitals, including National Taiwan University Hospital and Taipei Veterans General Hospital. The company’s parent, Kerry TJ Logistics Co (嘉里大榮物流), is associated with the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and the Chinese People’s Liberation Army (PLA), the
RSS