Record-breaking highs on Wall Street have been replicated in stock markets across Asia, with the Taiwan Stock Exchange today displaying similar positive sentiment, opening and closing on a high, pushing the TAIEX past the 9,700-point mark to create a new 21-month high.
The TAIEX closed up on 44.73 points, or 0.46 percent, on 9710.32 points with the day’s transactions totaling NT$99.23 billion. The positive performance of Taiwan Semiconductor Manufacturing and Hon Hai Precision Industry’s stocks helped to boost morale of bullish investors, and a price correction in financial stocks failed to dampen investors’ spirits. Small and mid-cap stocks continued their outstanding run, causing the TPEx Index to outperform the TAIEX.
Analysts note that although the TAIEX initially surged forward on a wave of bullish sentiment on the first day of trading in the Year of the Rooster, once the TAIEX hit the 9,700 point mark, market impetus appeared to fizzle out.
Total transactions today dipped below NT$100 billion: a 25 percent reduction on last Friday’s figure. Analysts say this shows that once the index hit a new high, bullish investors were not prepared to buy at high prices. Some fear that large-cap stocks may fail to gain impetus and that the TAIEX may experience short-term volatility.
Source article: http://www.taipeitimes.com/News/lang/print/2017/02/21/2003665370