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Market cap on main board up over 1.8% in past week

Market cap on main board up over 1.8% in past week

Market capitalization on the Taiwan Stock Exchange (TWSE) rose by more than 1.8 percent this week, in line with an increase in share prices since bargain hunters returned to the local trading floor as the impact from an interest rate hike by the U.S. Federal Reserve faded, according to TWSE.

Statistics compiled by the TWSE showed that market cap on the local main board rose NT$432.57 billion (US$13.11 billion) or 1.82 percent from a week earlier to NT$24.22 trillion for the week ending on Dec. 18. During that time, the weighted index on the TWSE gained 141.43 points or 1.74 percent at 8,257.32.

On Wednesday, the Fed wrapped up a two-day policymaking meeting and announced to raise its key interest rates by 0.25 percentage points to a range between 0.25 percent and 0.50 percent as the market had widely anticipated. The Fed also said that it will maintain ample liquidity in the market.

Foreign institutional investors even shifted to the buy side from Wednesday and continued a net buy in the following two sessions to offset a net sell in the first two sessions of the week. For the week, foreign institutional investors bought a net NT$1.05 billion in Taiwanese shares.

The weighted index excluding electronics rose 1.63 percent for the week, the weighted index excluding financial stocks gained 1.97 percent, and the index excluding electronics and financial stocks added 2.19 percent. The utility sub-index added 4.96 percent, the biggest increase among the some 30 sectors in the market.

The TWSE data showed that the FTSE TWSE Taiwan 50 Index, which is comprised of the top 50 firms, such as Taiwan Semiconductor Manufacturing Co., in terms of market cap rose 0.84 percent during the week, while the Formosa Stock Index, which is comprised of all listed companies on the main board and the over-the-counter market, gained 1.97 percent.

The exchange said that turnover on the main board totaled NT$415.76 billion for the five trading sessions of this week. The semiconductor sector recorded the highest turnover in the week with value worth NT$95.33 billion, accounting for 25.52 percent of the total turnover.

The optoelectronics sector came in second, posting NT$48.88 billion in turnover for the week, making up 13.08 percent of the total, the TWSE data indicated. As of Dec. 18, the local main board had 235 trading sessions for the year, posting NT$21.97 trillion in aggregate turnover, TWSE said.

The average daily turnover so far this year stood at NT$93.47 billion, the exchange added. (By Tien Yu-pin and Frances Huang)

Updated : 2021-09-28 23:45 GMT+08:00