The TAIEX yesterday staged a strong comeback, rising 2.81 percent, or 250.58 points, to close at 9,152.88, led by local firms in Apple Inc’s supply chain as the iPhone 7 is turning out to be more successful and popular than expected, analysts said.
The rally came despite a correction on Wall Street over the four-day Mid-Autumn Festival holiday and policy uncertainty ahead of meetings of the central banks of the US and Japan.
“The rebound was much stronger than expected because of pre-orders for Apple’s iPhone 7 blowing away expectations at US telecom providers,” Masterlink Securities Investment Advisory Corp (元富投顧) president Liu Kun-hsi (劉坤錫) said by telephone.
Turnover rose to NT$96.98 billion (US$3.08 billion), a 15.14 percent increase from Wednesday last week, the last day before the market closed for the holiday, Taiwan Stock Exchange data showed.
Apple might sell as many as 100 million iPhone 7s by the end of the year, thanks to robust initial sales, which might be benefiting from rival Samsung Electronics Co’s recall of its Galaxy Note 7, foreign technology analysts forecast.
The exciting twists led institutional players to increase positions in local shares by a net NT$11.27 billion, while mutual funds added net holdings of NT$178 million, but proprietary traders trimmed holdings by NT$57.31 million, according to bourse tallies.
Foreign fund inflows elevated the New Taiwan dollar 0.76 percent to close at NT$31.450 against the greenback in Taipei trading, outpacing a 0.06 percent increase in both the Chinese yuan and South Korean won, the central bank said in a statement.
Currency transactions totaled US$1.045 billion on the Taipei Exchange, a significant increase from US$705 million on Wednesday on the back of better iPhone 7 sales, a trader at a local bank said.
Taiwanese firms supply chips, batteries, camera lenses, casings and other components for the iPhone 7, explaining a 4.29 percent rise in electronics firms, while semiconductor players advanced 4.11 percent and computer and peripheral makers rose 3.51 percent, the Taiwan Stock Exchange said.
The TAIEX might consolidate for the rest of the week until the US Federal Reserve and the Bank of Japan announce their latest monetary policies, Liu said.
“Chances are the Fed will keep interest rates unchanged this month and save rate hikes for its meeting in December to better support economic growth,” Liu said, adding that the scenario would drive more foreign funds to emerging markets, including Taiwan.
However, the currency trader voiced caution, saying foreign exchange markets could turn around any time investors see fit.
The local currency might trade between NT$31.2 and NT$31.8 versus the US dollar in the near future, as the central bank will not tolerate excessive volatility, Liu said.
The central bank is due to review its policy rates later this month.
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
UNPRECEDENTED: In addition to the approved recall motions, cases such as Ma Wen-chun’s in Nantou are still under review, while others lack enough signatures The Central Election Commission (CEC) announced yesterday that a recall vote would take place on July 26, after it approved the first batch of recall motions targeting 24 Chinese Nationalist Party (KMT) lawmakers and Hsinchu Mayor Ann Kao (高虹安). Taiwan is in the midst of an unprecedented wave of mass recall campaigns, following a civil society push that echoed a call made by Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) in January to initiate signature drives aimed at unseating KMT legislators. Under the Civil Servants Election and Recall Act (公職人員選舉罷免法), Taiwanese can initiate a recall of district-elected lawmakers by collecting