Newspaper article China Post

TAIEX Ends Year of Rabbit with Slight Rally

Newspaper article China Post

TAIEX Ends Year of Rabbit with Slight Rally

Article excerpt

The China Post news staff--The Taiwan stock exchange market yesterday finished the Year of the Rabbit with a slight rise of 0.17 percent in price index, making the local bourse rally for the 14th consecutive year on its last trading session before the Chinese New Year holiday, according to market sources.

The weighted share price index rose 12.61 points to settle at 7,233.69 after fluctuating between 7,194.55 and 7,245.13 on total turnover of NT$112.6 billion.

Dealers said that Taiwan share prices yesterday closed only slightly higher, due mainly to investors remaining cautious amid fears that negative leads will emerge from global financial markets during the upcoming Lunar New Year holiday, when the local bourse is closed.

The market opened up 0.1 percent and moved to the day's high on follow-through buying from a 1.65 percent increase seen a session earlier before profit-taking set in to drag down the index into negative territory, the dealers said.

Financial shares suffered heavier downward pressure as market confidence was hit by disappointing fourth-quarter results released by Citigroup, which raised concerns about the impact from the debt problems in the eurozone, they added.

However, some bargain hunting followed to lend support to the broader market. In particular, buying right before the closing bell helped the index return to 7,200 points at the end of the session, they said.

The last-ditch buying in the session did reverse the early losses. And market analysts attributed the support to the government funds stepping in to vault the index back to the 7,200-point mark during the last session before the Lunar New Year holiday. The local bourse will be closed between Jan. 19 and Jan. 29 for the holiday.

They noted that the early losses reflected investors' worries about possible bad news concerning the debt crisis in Europe during the New Year holiday.

For the moment, the best choice for investors is to keep as much cash on hand, and therefore many investors preferred to wait until the end of the holiday to get a clearer picture about the global economic climate before moving ahead. …

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