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Taiwan shares soar to end above 8,800 points on Ma-Xi meeting

Taiwan shares soar to end above 8,800 points on Ma-Xi meeting

Taipei, Nov. 4 (CNA) Shares in Taiwan moved sharply higher to close above the 8,800-point mark Wednesday amid hopes of closer cross-strait relations ahead of a planned meeting between President Ma Ying-jeou (???) and Chinese leader Xi Jinping (???), dealers said. Investors scrambled to buy into large-cap stocks, in particular in the bellwether electronics sector with semiconductor stocks under the spotlight, while buying spread to old economy stocks to maintain the strength of the broader market throughout the session, they said. The weighted index on the Taiwan Stock Exchange ended up 143.83 points, or 1.65 percent, at 8,857.02, after moving between 8,754.18 and 8,864.17, on turnover of NT$127.21 billion (US$2.93 billion). The market opened up 0.53 percent in an initial reaction to a rising Wall Street, where the Dow Jones Industrial Average closed up 0.50 percent, and buying accelerated as investors were encouraged by the upcoming Ma-Xi meeting to raise their holdings to push up the index even higher by the close, dealers said. In a statement released by the Presidential Office Tuesday, Ma and Xi are scheduled to meet in Singapore on Nov. 7, with the aim of strengthening peace between Taiwan and China and maintaining the status quo across the Taiwan Strait. However, the Presidential Office said that the two leaders will not sign any agreement or issue any joint declaration after the meeting. "It is unlikely that the meeting will yield any real substance since Ma's second term will end (in May 2016). But, the meeting will have a symbolic meaning, signaling closer ties across the Taiwan Strait," Mega International Investment Services Corp. analyst Alex Huang said. "To foreign institutional investors, any improvement in cross-strait ties means reduced investment risks in Taiwan," Huang said. "Today's expanded turnover showed that foreign institutional investors were the major buyers in the equity market." According to the TWSE, foreign institutional investors bought a net NT$$21.73 billion worth of shares on the main board Wednesday. Huang said that buying focused on the high-tech sector as semiconductor stocks attracted much of market attention with Chinese integrated circuit firms having expressed strong interest in taking a stake in their Taiwanese counterparts or strengthening cross strait cooperation. The bellwether electronics sector closed up 2.06 percent and the semiconductor sub-index ended up 3.94 percent. IC designer MediaTek Inc. (???) gained 9.60 percent to close at NT$302.50 with 29.63 million shares changing hands after China's Tsinghua Unigroup (????) said that it is willing to push for a merger between its subsidiary and the Taiwanese firm. Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, rose 3.58 percent to end at NT$144.50, and IC packaging and testing services supplier Siliconware Precision Industries Co. (??) added 2.89 percent to close at NT$44.50. In the non-high tech sector, food maker Uni-President Enterprises Corp. (??) rose 1.44 percent to end at NT$56.20, Nan Ya Plastics Corp. (??) gained 1.68 percent to close at NT$66.60, and Fubon Financial Holding Co. (???) added 1.84 percent to end at NT$55.40. "After the latest gains, the local main board has turned technically healthier, paving the path for a further upturn in the near future," Huang said. However, he said that investors should keep alert over the U.S. October job data due Friday, which could move Wall Street. (By Frances Huang)


Updated : 2021-09-18 16:43 GMT+08:00