It was a spectacular Monday for the Taiwanese stocks as they soared high, hitting a record high of over 200 points at the end. The Taiwan shares augmented the sentiments prevailing in the markets as a sign of economic recovery. The surge in the trends occurred when most world economies reopened their businesses.
As per the dealers, the surge depended on the old economy stocks, which took the markets to a historic high during the trading day. The Taiex index shot up on the Taiwan Stock Exchange (TWSE), at 194.75 points to 17,904.90, on a turnover of NT$341.87 billion (US$12.21 billion). In the beginning, the opening of the market was with 0.42 percent and swiftly spiked to 17,924.09 points as intraday high that represented the fast-paced buying with the improvement in the U.S. markets. The dealers informed the main indexes saw their best performance since the S&P 500 index was up 0.75 percent. Also, the jobs data released took the tech-heavy Nasdaq index up 0.81 percent.
The high rally in the American markets emphasized economic recovery, and analysts say that the swing set high hopes to the investors about an economic recovery. It also eased the challenges due to the recent Federal Reserve rate hike leading to better stock prices.
The Fed monetary policy is likely to have foreign fund inflows into Taiwan that tend to push up the fund levels. The change lures most of the equity investors, boosting the liquidity. Immediately after the local equity markets opened, there was a surge in the old economy stocks driven by immense liquidity.
The steel stocks and the petrochemical stocks attracted investors as the agreement on a framework for a US$1.2 trillion infrastructure investment plan drew their attention besides the old economy stocks.
The China Steel Corp shares gained 3.44 percent to NT$39.90, and Chun Yuan Steel Industry Co. stocks raised 2.90 percent to NT$33.75. The petrochemical stocks that picked up were Formosa Plastics Corp that surged 1.43 percent to NT$106.50, and Nan Ya Plastics Corp. grew 1.89 percent to reach NT$86.10.
The shipping stocks of Evergreen Marine Corp., Yang Ming Marine Transport Corp, and Wan Hai Lines Ltd. were at 2.18 percent at NT$202.00 per share, 5.24 percent at NT$181.00, 6.89 percent, falling to NT$304.00.
The dominant player in the chip industry, Taiwan Semiconductor Manufacturing Co., jumped 1.36 percent to NT$596.00, and Hon Hai Precision Industry Co. – a major iPhone assembler, grew 2.69 percent to NT$114.50.
With the semiconductor exports booming in the last month, the electronics exports saw a massive surge in June at $14.51 billion that grew 28.5% over the past year.
