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Taiwan stocks open down 278 on the first day of resuming the 7% limit-down

Gordon Chen, Chairman of the Financial Supervisory Commission announces to restore standard 7% limiit on stock declines beginning today.

Gordon Chen, Chairman of the Financial Supervisory Commission announces to restore standard 7% limiit on stock declines beginning today.

TAIPEI (Taiwan News) – Shares in the Taiwan Stock Exchange plummeted sharply by 278.29 points as it opened today as the 7 percent limit took effect today after two weeks of halving the downward limit to 3.5 percent by the Financial Supervisory Commission (FSC).

Corporate bodies predicted that sharp sell-off pressures are inevitable for weeks as the 7 percent limit-down has been reverted beginning today. Some analysts said that the FSC's 3.5 percent downward limit over the past two weeks only delayed rather than stop the stock price decline. As a result, they believe the stock shares will extend their losses to “make up for the losses which should have occurted during the past two trading weeks while the 3.5 percent limit-down was activated.”

Analysts expressed their mixed views about the FSC's decision made yesterday to restore the maximum allowed fall to the standard 7 percent. Some praised the FSC's intervention last two weeks since it played a crucial role in slowing down sell-off and shoring up market confidence.

The FSC said its decision to resume the standard 7 percent downward limit was made by taking the global financial conditions into consideration. Also, the FSC said that opinions offered by local pundits were an index of the FSC's decision.

Last Friday, world stocks plummeted sharply with Japan's and South Korea's stocks down over 9 percent, 6 percent for Hong Kong's and Indonesia's. Taiwan stocks fell 150.89 points, or 3.2 percent, to close at a five-year low of 4,579.62 on Friday in tandem with the continued collapse of world stocks.

by Taiwan News, Website Editorial Staff


Updated : 2021-06-13 05:09 GMT+08:00