Taiex steady in wake of AIIB re­jec­tion

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

The main mar­ket held steady yes­ter­day de­spite ad­verse fac­tors in­clud­ing Tai­wan’s failed bid to join the Asian In­fra­struc­ture In­vest­ment Bank (AIIB, ) as a found­ing mem­ber.

Taiex rose slightly yes­ter­day to end up 48.82 points, or 0.5 per­cent, at a high of 9,666.52 points on turnover of NT$82.5 bil­lion (US$2.64 bil­lion).

Risk fac­tors, in­clud­ing soar­ing Shang­hai and Hong Kong bench­marks and Tai­wan’s aborted foray into China’s new fi­nan­cial ven­ture, were ex­pected to move the lo­cal mar­ket down­ward.

Fu­tures an­a­lysts feared the AIIB re­jec­tion would un­der­mine in­vestor con­fi­dence and that boom­ing Chi­nese mar­kets would hurt lo­cal turnover by drawing funds across the Strait.

But the lo­cal mar­ket closed higher yes­ter­day on ro­bust show­ings in Ger­man and U.S. ex­changes, an­other sig­nal of the U.S. eco­nomic re­cov­ery, an­a­lysts said.

Elec­tron­ics Up 0.47%

Tai­wan stocks opened up 4.94 points, led by trans­porta­tion and plas­tics shares.

The bell­wether elec­tron­ics sub-in­dex moved up 0.47 per­cent yes­ter­day, boosted by a strong per­for­mance from In­nolux Corp ( ) and AU Op­tron­ics Corp ( ), Tai­wan’s top LCD panel mak­ers.

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( TSMC, ), which is ex­pected to post its first quar­ter re­sults next week, stayed flat at NT$147 per share.

Me­di­aTek Inc. ( ) and Hon Hai Pre­ci­sion In­dus­try Co. ( ) closed down 0.47 per­cent and 0.21 per­cent, re­spec­tively.

The mixed show­ing came shortly af­ter Ma Xiaoguang (

), of China’s Tai­wan Af­fairs Of­fice, con­firmed that Tai­wan has been re­jected for found­ing membership in the AIIB. The Fi­nance Min­istry ( ) said Tai­wan would com­mit NT$2.2 bil­lion if ac­cepted into the Bei­jing-led ven­ture, which in­tends to fund ma­jor in­fra­struc­ture projects in the Asi­aPa­cific re­gion.

Still Be­low 9,700

De­spite gains, stocks were un- able to build up steam to breach the 9,700-point mark, closing yes­ter­day at 9,666.52 points.

Early this year, in­sti­tu­tional in­vestors ex­pressed an up­beat out­look, with Gold­man Sachs pre­dict­ing that the lo­cal in­dex will reach 10,500 points on the Fi­nan­cial Su­per­vi­sory Com­mis­sion’s (FSC, ) new mar­ket up­grade plan. An­a­lysts said the FSC’s re­cent fore­casts of lib­er­al­iza­tion mea­sures are hav­ing a limited ef­fect on boost­ing mar­ket vol­ume and eas­ing in­vestor cau­tion. Mar­ket per­for­mance in­di­cates that the Fi­nance Min­istry’s new cap­i­tal gains tax — which tar­gets largescale traders start­ing in 2018 — is en­cour­ag­ing do­mes­tic in­vestors to seek bet­ter op­por­tu­ni­ties over­seas.

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