Taiwanese shares closed up 1.96 percent yesterday on a technical rebound following Wall Street’s gains overnight, dealers said.
The TAIEX index rose 124.92 points to 6,489.09 on turnover of NT$164.04 billion (US$4.99 billion).
Gainers led losers 1,546 to 652 with 124 stocks unchanged.
In the week to yesterday, the weighted index fell 94.78 points or 1.44 percent after a 9.86 percent increase the previous week. Average daily turnover stood at NT$170.52 billion, compared with NT$211.87 billion a week ago.
Yesterday’s market opened 1.29 percent higher and the momentum accelerated throughout the trading session on ample liquidity, dealers said.
“Bargain hunters appeared upon the market opening to take advantage of the downside seen earlier this week,” President Securities Co (統一證券) analyst Steven Huang said.
GREAT HOPES
“Many investors still have great hopes that the global economy is improving and share prices will continue to reflect the fundamentals,” Huang said.
However, he said the market may face volatility as it moves closer to the 6,500 to 6,600 point range in the short term, as cautious sentiment is expected to affect Taiwan shares next week as the opposition protests this weekend against the government.
TROUBLE AHEAD?
Worries linger over a possible prolonged standoff and even violence as the Democratic Progressive Party (DPP) also plans an all-night sit-in protest in front of the Presidential Office, dealers said.
“Political conflicts are the last thing the stock market wants to have,” Grand Cathay Securities Corp (大華證券) analyst Mars Hsu said. “Many investors may use such political factors as an excuse to cut positions for profit.”
Investors are also keeping a close eye on first quarter GDP data scheduled for release on Thursday, and waiting for government comments on the economic outlook for the rest of the year, they said.
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