The local stock market remained relatively resilient yesterday, despite concerns over the newly detected Omicron variant of SARS-CoV-2 in multiple countries, dealers said.
The main board saw strong technical support at around the 60-day moving average of 17,165 points, with bargain hunters shifting to the buy side, picking up select large tech stocks to help the broader market recoup most of its earlier losses, they said.
The TAIEX ended down 41.3 points, or 0.24 percent, at 17,328.09. The benchmark index tumbled 1.61 percent on Friday amid concern over the variant, which was first detected in southern Africa.
Photo: CNA
Turnover totaled NT$318.17 billion (US$11.44 billion), with foreign institutional investors buying a net NT$6.07 billion of shares on the main board, Taiwan Stock Exchange data showed.
“The local market reacted badly to renewed COVID-19 concerns on Friday,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “So, after an initial dive this morning, many heavyweights appeared resilient, recovering from the losses, as the TAIEX moved closer to technical support at around the 60-day moving average.”
“Bargain hunters rushed to buy into large-cap tech stocks, boosting the bellwether electronics sector and limiting the losses,” Huang said. “I suspect government-led funds played a role in helping the TAIEX recover from its low today as they did on Friday.”
Huang said it was too early to say whether the main board had turned stable, as investors still have to watch how infectious and fatal the new virus is.
In addition, OPEC and its allies are to meet on Thursday and a decision on their output could move global financial markets, he said.
Minister of Finance Su Jain-rong (蘇建榮) told reporters at the legislature that the NT$500 billion National Stabilization Fund would keep a close eye on market movements.
If necessary, the fund commission would hold a special meeting to discuss whether to enter the market and shore up share prices, Su said.
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