Food, reconstruction field stocks up after Soudelor
Typhoon-related concept shares shot up yesterday, attracting investment in the aftermath of Typhoon Soudelor as commodities and nationwide reconstruction gained the attention of investors.
Food product stock prices shot to their highest at 1,360.98 points as of press time — around 4.4 percent growth — and not only topping concept shares in every category, but also hitting their newest high in the past two years.
General merchandise stocks also saw a rise of 2 percent, including President Chain Store Co. ( ) and Far Eastern Department Stores Ltd. ( ).
Shares in water-related products have also been put in the spotlight as Northern Taiwan saw crowds of people buying bottled water, due to water contamination the typhoon left in its wake. Uni-President ( ) and Taisun ( ) stocks even saw gains of over 3 percent. Wei Chuan ( ) also benefited from the posttyphoon business.
Reconstruction concept shares were boosted as well, as the market expects a rise in demand for electronic machinery, glass ceramics and related material for construction.
Major electronic machinery benefactors include Chang Type Industrial Co. ( ) and Kian Shen ( ), while Taiwan Glass ( ) was top in glass ceramics. Morning sessions saw growth of over 3 percent as well.
Economic growth when boosted by post-disaster situations is usually a “short-term phenomenon,” an unnamed legal representative said. For continual growth, it would still depend on the fundamentals in mid-term and long-term change.
Food-related shares are currently in their peak season, as sports beverages and ice-cream products are in large demand during the summer. Growth will continue into the Ghost Festival season, suggesting a positive gain in the third quarter.
Post-storm Rebuilding Sees
Among other reconstruction efforts, cement, steel and iron and electronic equipment machinery stocks have also performed positively post-typhoon.
In cement stocks, Taiwan Cement Corp. ( ) saw a rise of over 2 percent, while Yungtay ( ) and other stock prices shot up by over 3 percent and more. In steel and iron stocks, Chien Shing ( ) saw over 5 percent positive growth, while Feng Hsin Iron and Steel Co. (
) will not this week, as international prices in raw material are seeing a rise.
Feng Hsin’s announced a 10-day cease of production as one of its factories was damaged in the typhoon, but suggested the delay will not affect shipments.