Taiex steady in wake of AIIB rejection
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.