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Taiwan shares jump in mid-morning session on Ma-Xi meeting

Taiwan shares jump in mid-morning session on Ma-Xi meeting

Taipei, Nov. 4 (CNA) Taiwan shares moved sharply higher in the mid-morning session Wednesday after the Presidential Office announced a day earlier that President Ma Ying-jeou (???) will meet with Chinese leader Xi Jinping (???) in Singapore Saturday, dealers said. Buying reflected hopes of further warming in cross-strait ties after the Ma-Xi meeting with large-cap stocks across the board in focus, which pushed the weighted index to vault past the 8,800 point mark, they said. As of 10:55 a.m., the weighted index on the Taiwan Stock Exchange had added 1.42 percent to 8,836.62 points on turnover of NT$71.04 billion (US$2.19 billion). The local equity market opened higher in an initial reaction to the extended gains on Wall Street, where the Dow Jones Industrial Average ended 0.50 percent overnight, and momentum accelerated as investors took cues from the upcoming Ma-Xi meeting to raise their holdings in the local bourse, dealers said. "The planned meeting between the two leaders across the Taiwan Strait has prompted investors to think positively that the event will pave the path for closer cross-strait ties, which could benefit the economy," Hua Nan Securities analyst Henry Miao said. In a statement, the Presidential Office said that the upcoming meeting aims to boost peace and maintain the status quo across the Taiwan Strait. However, the Presidential Office said that President Ma will not sign any agreement or issue any joint declaration during their meeting. "Judging from the current buying in the local equity market, investors seemed to have been excited by the meeting," Miao said.
"The expanded turnover showed that foreign institutional investors continued to stand on the buy side after they bought more than a net NT$10 billion yesterday." "Encouraged by foreign institutional enthusiasm, retail investors also jumped into the trading floor to add ammunition to the equity market," he said, adding that daily trading volume for Wednesday could hit NT$130 billion. Miao said that investors rushed to pick up large-cap stocks across the board and the strength of these big stocks served as the driver to boost the weighted index by more than 100 points. Among the gaining high-tech heavyweights, contract chip maker Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market had added 2.87 percent to NT$143.50, and integrated circuit designer MeidaTek Inc. (???) had risen 9.42 percent to NT$302.00 as of 10:55 a.m. In the old economy sector, Formosa Plastics Corp. (??) had added 1.28 percent to NT$78.90 and Nan Ya Plastics Corp. (??) had risen 1.83 percent to NT$66.70. In the financial sector, Fubon Financial Holding Co. (???) had added 0.92 percent to NT$54.90, and E Sun. Financial Holding Co. (???) had risen 1.76 percent to NT$20.25. "If the uptrend continues, the local main board is expected to challenge the next technical resistance at around 9,000 points in the near future," Miao said. (By Wei Shu and Frances Huang)


Updated : 2021-09-22 08:28 GMT+08:00