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Talk of the day -- 2011 bad year for stock investors

Talk of the day -- 2011 bad year for stock investors

The Taiwan Stock Exchange (TWSE) bade farewell to 2011 with a marginal loss in thin trade Friday. As in the past, the market opened higher on the last trading day of the year, but failed to maintain ground due to late-session profit-taking. The benchmark index closed down 0.03 percent, or 2.74 points lower from the previous session at 7,072.08. The marginal loss disrupted a five-year streak in which the index had posted gains in the year's final day of trading. Overall, the index shed 1,900.42 points, or 21.18 percent down from last year's finish at 8,972.5. While the index managed to stay above the 7,000-point mark, total market capitalization has shrunk from NT$23.81 trillion (US$785.8 billion) to NT$19.18 trillion, or a hefty decrease of NT$4.63 trillion. The figure can be translated into a loss of about NT$200,000 in assets for each of Taiwan's 23 million people. The following is an excerpt from the United Evening News report on the 2011 stock market performance: For the 8 million local stock investors, 2011 was a bad year, as each of them lost an average of NT$580,000, a rare event in investing terms. A series of events rocked confidence over the year, starting with the Arab spring, then the tsunami in Japan and culminating with the seismic events surrounding the eurozone debt crisis since the summer. As the market was often battered by bearish news, trading declined steadily during the year. As of Dec. 29, the average daily turnover had contracted to about NT$109.5 billion, down from last year's NT$115.1 billion. On that day, the trading volume even dropped to a 34-month low of NT$51 billion. While the number of stock accounts increased from 8.68 million to 8.91 million, the number of accounts with transaction records fell from 1.78 million at the end of last year to 1.37 million on Nov. 30 this year. The shrinking number indicated that many sotck investors had withdrawn from the market after incurring heavy losses, market analysts said. TWSE Chairman Chi Schive said the local bourse deserved a score of 71 points on a zero-to-100 scale. "Our stock market performed not too badly in comparison with many of its foreign counterparts," Schive said. The number of listed companies reached 772 this year, marking an increase of 51 from last year, while 20 foreign companies came to Taiwan for initial or second public offerings during the year, according to TWSE statistics. (Dec. 30, 2011). (By Sofia Wu)


Updated : 2021-01-20 16:01 GMT+08:00