Unlimited day trading of securities is to be allowed on the Taiwan Stock Exchange (TWSE) starting today, the latest move by the Financial Supervisory Committee (FSC) to boost turnover and make the market more competitive internationally.
Investors are now able to buy and sell in the same day all the securities that can be traded on margin, which totaled 1,432 stocks and exchange-traded funds (ETFs) as of the end of December last year, the commission said.
Since June 1 last year, a total of 377 stocks and ETFs — mainly large-cap stocks in the FTSE TWSE Taiwan 50 Index and the FTSE TWSE Taiwan Mid-Cap 100 Index and accounting for 90 percent of the nation’s market capitalization — have been allowed to be day traded, the commission said.
The commission announced the measure in December.
The FSC’s eased restrictions on transactions, such as expanded margin utilization and day trading, are expected to help boost daily turnover by between 15 percent and 20 percent, then-commission chairman William Tseng (曾銘宗) said in December.
Commission Vice Chairwoman Jennifer Wang (王儷玲) today takes up the post left vacant by Tseng, who takes the oath of office as a legislator-at-large for the Chinese Nationalist Party (KMT) today.
The TAIEX last week rose 5.02 percent for the week to end at 8,145.21 points, but the index still finished a turbulent month with a monthly decline of 2.31 percent.
Average daily turnover last month reached NT$82.581 billion (US$2.45 billion), exchange data showed. The figures were lower than the NT$116.1 billion registered for the whole of last year and far less than the commission’s ideal range of between NT$120 billion and NT$130 billion.
Tseng on Saturday said that stock market turnover would gradually pick up after the Lunar New Year holiday, which begins on Sunday.
Additional reporting by Ted Chen
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