The TAIEX hit the 10,000 mark briefly yesterday morning, its highest level in more than 15 years, as foreign investors extended their purchases of local shares.
The benchmark index reached 10,002.58 in the morning, but retreated to close at 9,973.12, which was still 0.6 percent higher than Friday last week and marked the market’s highest closing level since April 11, 2000.
Turnover totaled NT$130.16 billion (US$4.22 billion), with foreign portfolio investors buying a net total of NT$21.57 billion of local shares.
Photo: CNA
Last week, they bought a net of NT$78.3 billion of local stocks.
The strong net buying stimulated demand for the New Taiwan dollar and boosted the currency by NT$0.19 to close at NT$30.861 against the US dollar — its highest level in five months.
The NT dollar strengthened to NT$30.551 versus the greenback in the middle of yesterday’s session.
Most analysts said Taiwan’s market may climb to a record-high level again later this year.
“Although the TAIEX may face some upward pressure for a short while after rebounding to the 10,000-point mark for the first time in 15 years, it may rise again, backed by the government’s stimulus plan and strong liquidity,” CTBC Investments Co Ltd (中國信託投信) fund manager Allison Lu (呂雅菁) said in a note.
Lu said the government’s plan to expand the daily stock trading limit from 7 percent to 10 percent in June, as well as foreign portfolio investors’ interest in buying shares, may both be key factors to raise short-term momentum for the TAIEX.
Taishin Securities Investment Trust Co (台新投信) fund manager Shih Chang-cheng (施昶成) said that various global economic uncertainties, including the uncertainty over when the US Federal Reserve will raise US interest rates, Greece’s poor financial condition and inventory adjustments in the semiconductor sector, have affected the TAIEX and confirmed its rising trend.
“If the TAIEX pulls back in the near term, it may provide a good entry point for investors to welcome a stronger market performance in the second half of this year,” Shih said in a statement.
Franklin Templeton Investment Co Ltd (富蘭克林華美投信) said investors should focus on financial shares and stocks with China concepts, which have not climbed to a reasonable level yet.
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