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FSC head forecasts higher turnover on new day trading rules

FSC head forecasts higher turnover on new day trading rules

Taipei, Jan. 7 (CNA) Tseng Ming-chung, chairman of Taiwan's Financial Supervisory Commission (FSC), said Tuesday that turnover on the local bourse will continue to grow as the rules on day trading have been relaxed. Turnover increased Monday when the new rules took effect, but it was not significant, as many investors were still struggling to figure out the new trading rules, Tseng said. As investors gain a better understanding of the new rules, however, turnover will expand, he said. On Monday, turnover on the main board totaled NT$96.10 billion (US$3.20 billion), up from NT$93.48 billion in the previous session, while trading volume on the OTC market rose to NT$30.40 billion from NT$26.93 billion. As part of the FSC's efforts to lure back investors and boost daily turnover, the commission is now allowing day trading (buying and selling a stock on the same day) in select large- and mid-cap stocks. A total of 200 stocks on the Taiwan Stock Exchange and the over-the-counter (OTC) market fall under the new day trading rules. Before the change, day trading was allowed only for margin trading or short selling. The 200 stocks are the constituents in the FTSE TWSE Taiwan 50 Index, the FTSE TWSE Taiwan Mid-Cap 100 Index, and the GreTai 50 Index. They include Taiwan Semiconductor Manufacturing Co., Microelectronics Corp., Formosa Plastics Corp., Evergreen Marine Corp., coffee chain operator Gourmet Master Co., and Vanguard International Semiconductor Co. Asked to comment on a decline in the weighted index on the main board on Monday despite the new day trading rules, Tseng said it was simply a normal fluctuation. The weighted index closed down 0.54 percent, while the index on the OTC market ended 0.58 percent lower. Meanwhile, Taiwan Stock Exchange (TWSE) said the number of the companies launching initial public offerings (IPOs) in 2013 rose about 45.5 percent from a year earlier to 32, comprising 22 local companies and 10 overseas incorporated ones. The 32 new IPOs raised a total of NT$161.5 billion in funds, up more than an annual 68 percent, TWSE said. The 32 newly listed companies on the main board posted an average NT$3.93 in earnings per share in the first nine months of last year, while their average price-to-earnings ratio stood at 28.99. (By Stacy Wu and Frances Huang)


Updated : 2021-03-04 08:47 GMT+08:00