Friday November 30, 12:00 AM
Stocks test higher amid cautious trading day
By Noah Weston, Special to The China Post
sg.news.yahoo.com
The TAIEX took a tentative step forward yesterday, up 18.25 points, or 0.41 percent, to 4,465.83 as pre-election caution clashed with optimism over the formation of new financial holding companies. Volume plummeted to NT$65.73 billion from NT$98.34 billion on Wednesday.
A number of factors combined to keep the index in negative territory for most of yesterday, including a bleak U.S. Fed Beige Book report and consequent dive overnight in U.S. shares, profit-taking ahead of the elections on Saturday, and, for the first time in weeks, an outflow of capital from foreign investors, yesterday net sellers of NT$963.61 million in local issues.
"Alarming U.S. economic figures and domestic political concerns continued to prompt investors to sell shares," said Lai Hsien-cheng, vice president at Wan Sheng Securities Investment Consulting Co Ltd.
The index was pushed up, however, by purchases in financial issues and suspected government support.
The Ministry of Finance (MOF) yesterday gave formal letters of approval for six financial institutions to form financial holding companies, including China Development.
On the news, financials soared 2.62 percent while most of the other sectors, including electronics at -0.17 percent, languished.
Semiconductors fared poorly, with TSMC down NT$1 to NT$73.0, and UMC shedding NT$0.6 to NT$39.4.
Dealers see major shifts in the index in either direction as unlikely in the short-term and put support at 4,200. |
