UMC closed @ 96.50 -2.50 vol 93,756,999 2nd most active, low of 92.5 (I think A bottom has been reached)
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Taiwan Stocks Rise as Govt Commits to Buy Stocks, TSMC, Hon Hai Lead Gains
By Brett Cole and George Hsu
Taiwan Stocks Rise on Govt Buying, Hon Hai, Asustek Lead Gains
Taipei, March 16 (Bloomberg) -- Taiwan's key stock index
rose, reversing losses that had put it on track for its worst five-
day slide in almost six years, as the government said it started
using a NT$200 billion ($6.5 billion) fund to buy shares.
Gains by Hon Hai Precision Industries Co. lifted the TWSE
Index 42.73, or 0.5 percent, to 8682.76, after it had fallen as
much as 4.5 percent. At its lowest, the index was down more than
14 percent in five days, the biggest such slide since October
1996. Within the index, 263 stocks fell and 146 rose. Buying by
institutional investors viewing the declines as a buying
opportunity also lifted the index.
``I have 12 percent of my fund in cash and 88 percent in
stocks, that's up from 80 percent to 85 percent two weeks ago,'
said John Lin, who manages $330 million in Taiwan equities at
National Investment Trust Co. Ltd. in Taipei.
The index fell in early trading in the wake of yesterday's
warning from Chinese Premier Zhu Rongji that China will never
allow Taiwan's independence and will use military force if it
stalls on reunification talks.
This prompted Vice Finance Minister Yen Ching-chang, who
manages the Taiwan's government fund, to tell the funds to buy
stocks. In a statement broadcast on radio Yen said the government
funds ``aims to restore investors' confidence.' ``Investors
should remain rational and not let mainland China's talk influence
us,' Yen said.
Zhu told a press conference yesterday that China is prepared
to make ``concessions' in talks with Taiwan if the winner of
Saturday's presidential vote disavows independence. He also told
voters to ``be vigilant' and said he understood their fears that
a victory by ``pro-independence' forces could lead to war.
Taiwan's three leading presidential candidates, Vice
President Lien Chan of the Kuomintang, Chen Shui-bian of the
Democratic Progressive Party and independent candidate James
Soong, are locked in a virtual dead heat. The DPP has previously
advocated independence, but has been toning down this stance.
``Even under the smoothest transition, there will inevitably
be bumps and investors may demand an increased risk premium to
hold Taiwan stocks for a period of time,' said Samuel Webster, a
director of research at Credit Suisse Investment Consulting
(Taiwan) Ltd. in Taipei. |
