TAIEX hits 10,000-point high for the first time in 15 years

The China Post - - FRONT PAGE - BY ENRU LIN

The Tai­wan Stock Ex­change hit the 10,000- point mark yes­ter­day for the first time in 15 years, a break­through that the Fi­nan­cial Su­per­vi­sory Com­mis­sion ( FSC,

) traced to for­eign in­sti­tu­tional buy­ing. The bench­mark Taiex in­dex ex­ceeded the 10,000- point mark at 9: 59 a. m. yes­ter­day be­fore closing up 0.6 per­cent at 9,973.12 on turnover of NT$ 130.16 bil­lion.

At a meet­ing of the Leg­isla­tive Yuan’s Fi­nance Com­mit­tee, Kuom­intang ( KMT) Leg­is­la­tor Lu Shiow- yen ( ) re­marked on the mile­stone and passed out candies to cel­e­brate.

Dur­ing in­ter­pel­la­tion at the meet­ing of the Fi­nance Com­mit­tee, FSC Chair­man Wil­liam Tseng ( ) was asked if the cen­tral gov­ern­ment in­ter­vened in the stock mar­ket.

Tseng said the mar­ket had been boosted by in­di­vid­ual in­vestors but was mainly sup­ported by strong for­eign in­sti­tu­tional buy­ing.

The FSC and the Cen­tral Bank im­posed a new re­stric­tion last week on for­eign in­vestors of Tai­wanese cor­po­rate bonds and bank deben­tures, cap­ping hold­ings at 30 per­cent of their Tai­wanese se­cu­ri­ties, Tseng said.

TAIEX saw a 300- point ad­vance last Thurs­day and Fri­day as over­seas in­vestors shifted NT$68.7 bil­lion from bonds to stocks, he con­tin­ued. The mar­ket closed at 9,913 points on Fri­day, in place to po­ten­tially break the 10,000-point mark the week af­ter.

He said the FSC will con­tinue to im­ple­ment the “as­cen­sion plan” ( ), a pack­age of mea­sures aimed at mak­ing Tai­wan in­vest­ment more at­trac­tive for off­shore funds.

“In my heart I have the stock mar­ket, but I do not have my heart set on a spe­cific point- mark mile­stone,” Tseng said.

Room to Climb

Fi­nance Min­is­ter Chang Sheng- ford ( ) was up­beat on the TAIEX surge, say­ing the msr­ket has more room to climb as it is cur­rently not driven by im­pas­sioned re­tail in­vestors.

“I have ex­pe­ri­enced that era in which ( TAIEX) was above 30,000 points,” Chang told re­porters on the side­lines at the Fi­nance Com­mit­tee.

“At that time, peo­ple had gone crazy. The veg­etable sell­ers were buy­ing stocks. The bus driv­ers at my son’s preschool — all of them had re­signed from their jobs to buy stocks,” Chang said

The at­mos­phere this time is calmer, the Fi­nance Min­is­ter said, adding that the dif­fer­ence boosts the like­li­hood of TAIEX con­tin­u­ing to rise.

“When all of the peo­ple are jump­ing in ( the stock mar­ket), that means the mar­ket froth is about to dis­si­pate,” he said.

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