Tai­wan stock fu­tures in­dex hits mile­stone

The China Post - - TAIWAN BUSINESS -

The Tai­wan stock fu­tures in­dex touched the 10,000-point mark for the first time in 15 years at one point Fri­day be­fore pulling back, but it still ended above its pre­vi­ous close.

The fu­tures in­dex’s pre­vi­ous high was 10,181, the closing level recorded on April 11, 2000.

Ac­cord­ing to the Tai­wan Fu­tures Ex­change, the stock fu­tures in­dex closed up 82 points from a day ear­lier at 9,920 on trad­ing vol­ume of 205,630 con­tracts Fri­day, af­ter mov­ing be­tween 9,860 and 10,000, at a time when the regular stock mar­ket was awash in liq­uid­ity.

The stock fu­tures in­dex uses the Tai­wan stock ex­change’s bench­mark in­dex — the Tai­wan Stock Ex­change Cap­i­tal­iza­tion Weighted Stock In­dex (Taiex) — as its un­der- ly­ing in­dex.

An­a­lysts see the fu­tures mar­ket as a barom­e­ter of the regular stock mar­ket, and the mo­men­tary breach of the 10,000-point mark en­cour­aged many in­vestors who hoped the spot mar­ket will soon fol­low suit.

On Fri­day, the Taiex closed up 1.18 per­cent at 9,913.28, af­ter mov­ing be­tween 9,839.71 and 9,961.31, on ex­panded turnover of NT$164.65 bil­lion (US$5.31 bil­lion) as in­vestors rushed to pick up elec­tron­ics stocks, in par­tic­u­lar in the semi­con­duc­tor sec­tor.

An­a­lysts said Tai­wan’s cen­tral bank is work­ing with the Fi­nan­cial Su­per­vi­sory Com­mis­sion to curb spec­u­la­tion by for­eign in­sti­tu­tional in­vestors in the lo­cal for­eign ex­change mar­ket, and those in­vestors are mov­ing their funds in Tai­wan into eq­uity mar­kets as a re­sult.

They were also buy­ing ag­gres­sively in the spot mar­ket to push up value of their large hold­ings of long po­si­tion fu­tures con­tracts, of which they held more than a net 10,000 as of Thurs­day, an­a­lysts said.

Ac­cord­ing to the TWSE, for­eign in­sti­tu­tional in­vestors bought a net NT$46.48 bil­lion in lo­cal shares on the main board Fri­day af­ter a net buy of NT$22.33 bil­lion on Thurs­day.

With for­eign in­vestors still hold­ing large long-po­si­tion con­tracts in the fu­tures mar­ket, lo­cal in­sti­tu­tional and re­tail in­vestors are ex­pected to fol­low suit in rais­ing their long po­si­tion hold­ings, which could push up share prices in the spot mar­ket, an­a­lysts said.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.