Taiwan: Taiwan shares close up 0.77 percent

Taiwan: Taiwan shares close up 0.77 percent

Taiwan share prices closed up 0.77 percent today on expectations that a new round of the U.S. Federal Reserve Board's quantitative easing policy will pave the way for further fund inflows into Asian markets, dealers said.

The weighted index rose 63.95 points to 8,357.85, after moving between 8,317.86 and 8,367.19, on turnover of NT$98.18 billion (US$3.23 billion).

The weighted index opened up 0.33 percent on a technical rebound from the previous session, and the momentum continued with buying focusing on large-cap stocks as investors took cues from the gains posted by other regional markets following the U.S. monetary easing policy, the dealers said.

A total of 2,323 stocks closed up and 1,537 were down, with 339 remaining unchanged.

The construction sector scored the highest gains, up 2.1 percent on high hopes that further fund inflows will boost the value of the local currency and eventually lift domestic asset value, according to the dealers.

The foodstuff sector rose 1.5 percent, textile shares added 1.3 percent, and both plastics and chemicals issues and the machinery and electronics sector added 0.9 percent.

Cement and financial stocks both closed up 0.6 percent, while paper and pulp shares rose 0.2 percent.

The U.S. Fed announced overnight that it will pump US$600 billion into the market through purchases of treasury bonds until the middle of next year.

"A stronger New Taiwan dollar against the U.S. dollar today showed that foreign money continued to enter the local market, " Mega Securities analyst Alex Huang said, adding that the day's buying in local stocks largely came from foreign institutional investors.

"The stock market loves to see a rising liquidity level, as it lends support to share prices, " Huang said.

However, he went on, as the index moved closer to the nearest technical resistance at around 8,400 points, investors tended to target blue chip stocks as safe havens.

He said the reduced turnover showed this kind of cautious sentiment, with many investors reluctant to chase prices.

Among the large-cap stocks, Cathay Real Estate rose 4.31 percent to NT$18.15, Wei-Chuan Foods added 2.17 percent to NT$35.25 and Formosa Plastics gained 1.23 percent to NT$90.60.

Chimei Innolux Corp. increased 3.2 percent to NT$40.10. Taiwan’s largest maker of liquid-crystal displays said it expects shipments and prices to rise this quarter as demand improves and the company sells more high-value products.

Farglory Land Development Co. advanced 2.5 percent to NT$77.40, the most since Sept. 27. The island’s largest construction company by value said it won a $1 billion contract from Mubadala Development Co. an Abu Dhabi government investment unit.

Updated : 2021-01-25 19:07 GMT+08:00