Taiwan stock market defies bears with 4% recovery

Nick Land, The China Post

Taiwan’s stock market beat cautious expectations with a solid 4 percent recovery yesterday, gaining 164.02 points to close at 4,300.41, its highest level in a week. Turnover rose to NT$62 billion, up from Wednesday’s NT$45.5 billion. Worries about the resilience of Wednesday’s gains led to an early decline, with some dealers expecting the market to test the 4,000 point floor, but these concerns were quickly overwhelmed by positive sentiment, supported by last night’s Wall Street upturn. By mid-session initial profit-taking and stop-loss trades had been replaced by wide-spread bargain-hunting. Despite this week’s upturn many analysts remain bearish, insisting that price-chasing is still fragile, and attributing much of the market’s bounce back to manipulation by government-related funds. There is also pessimism about forthcoming Q1-2 reports, and the danger that new stock issues will overload the market.

Tech-stocks performed well, with TSMC up 2.5 percent to NT$60.5, UMC up 2.8 percent to NT$37.1, Acer Inc. up 6.5 percent to NT$18.0, and chipset-design newcomer MediaTek adding a further 6.8 percent to NT$361.0.