Food, re­con­struc­tion field stocks up af­ter Soude­lor

The China Post - - TAIWAN BUSINESS - BY STEPHANIE CHAO

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

Money

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.

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