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Short sales of selected stocks to be further eased Jan. 5(update-1)

Short sales of selected stocks to be further eased Jan. 5(update-1)

Taipei, Dec. 31 (CNA) Short selling of 150 selected stocks at prices below the closing levels of the previous trading day will be resumed from Jan. 5, the Financial Supervisory Commission (FSC) announced Wednesday.
The stocks eligible for short sales at prices below the closing levels of the previous day will be those that comprise the Taiwan 50 Index, the Taiwan Mid-Cap 100 Index and the Taiwan Technology Index, the FSC said in a statement.
The Taiwan Stock Exchange (TWSE) will be closed Thursday through Sunday for New Year celebrations and will resume trading Monday when investors will be allowed to trade the 150 selected stocks short at prices below the closing levels of the previous trading day.
The FSC on Oct. 1 imposed a total ban on short selling, at the height of the global financial turmoil. With world financial markets gradually stabilizing, the financial regulatory body lifted the ban partially Nov. 28, allowing short sales of stocks at prices above the previous-day closing levels as part of its efforts to spur market liquidity and trading volume.
As the weighted TWSE stock index, the market's key barometer, gained 3.04 percent between Nov. 28 and Dec. 30, the FSC said it decided to further ease restrictions on short selling by allowing short sales of the 150 blue-chip stocks at prices below the previous day closing levels.
The weighted stock index closed at 4,591.22 points Wednesday, up a marginal 2.18 points from the closing level the previous day.
Compared with the closing level of 8,506.28 points at the end of last year, the index shed 3,915.06 points, or 46.03 percent, a performance that was better than China's but worse than the bourses in the United States, Japan and South Korea.
Altogether, Taiwan's stock market capitalization shrank by more than NT$9.8 trillion (US$296.97 billion). With the current market value standing at around NT$11.7 trillion, each Taiwan citizen lost an average of around NT$427,000 in book value.
(By Sofia Wu)




Updated : 2020-12-01 08:26 GMT+08:00