TMCnet News
Local bourse regains 9,000-point level, led by electronics, financial stocks(Taiwan News Via Acquire Media NewsEdge) Shares in Taiwan ended above the 9,000point mark mainly thanks to investor optimism towards upcoming earnings reports. Taiwan shares closed up 137.36 points or 1.54 percent at 9,049.98 Monday on turnover of NT$84.68 billion (US$2.77 billion). The market opened up 0.42 percent and moved between 8,937.50 and 9,062.89 points. Buying accelerated in both the electronics and financial sectors, which closed up 1.60 percent and 1.52 percent respectively, and the food sector also rose 1.01 percent. The bellwether electronics sector continued to gain ground, led by hightech blue chips such as Taiwan Semiconductor Manufacturing Co Ltd (2330), Largan (3008), and MediaTek (2454), and Hon Hai (2317), whose shares jumped 2.67 percent, 1.40 percent, 5.85 percent, and 2.08 percent respectively. TSMC announced its net revenues for October of this year. TSMC posted consolidated revenues of approximately NT$80.74 billion, representing an increase of 7.9 percent on month and an increase of 55.9 percent on year, a record high for the fourth consecutive month. Financial stocks outperformed the market as upbeat earnings reports for October are expected for the coming weeks. Fubon Financial Holding Co. (2881) rose nearly 2 percent ahead of the release of its earnings report to close at NT$50.20. The company reported good news of a record net profit of NT$56.59 billion for the first 10 months of this year, including NT$3.00 billion in October alone. Fubon's yearly growth rate for the first 10 months was 89 percent, with an earnings per share (EPS) of NT$5.53, also hitting a new high. Other financial stocks including Cathay Financial Holdings (2882), CTBC Holding (2891), and Mega International Commercial Bank (2886), First Bank (2892), and Entie Bank (2849) saw their share prices increase around 2 percent on Monday. Both the Hong Kong Securities and Futures Commission and China Securities Regulatory Commission announced the approval and launch of a trading link between Hong Kong and Shanghai's stock exchanges on November 17 after weeks of delays. This move is expected to lead to billions of dollars in daily transactions. The Hong Kong stock market surged Monday on the news of approval. Tony Huang, an analyst with Taishin Securities Investment Advisory, said the Taiwan Stock Exchange Weighted Index rose to close above 9,000 points, showing limited impact on the local stock market in the short term, Huang said, as the makeup of the local bourse is different from those in Hong Kong and Chinese equity markets. In the mid and longterm, however, the Taiwan stock market's attractiveness might be eclipsed if MSCI raises China's weighting in its global index adjustment, which will attract foreign investors at the expense of Taiwan's stock turnover. Foreign institutional investors (including mainland investors) purchased a net NT$ 15.86 billion, dealers bought a net NT$ 870 million, and securities investment trust companies bought a net NT$484 million. Net buying totaled NT$17.21 billion. |