TAIEX may not mirror ’12 election due to holiday

The China Post news staff

The China Post news staff–The outcome of the 2012 presidential election, slated for Saturday, Jan. 14, is not expected to be quickly reflected in the performance of the Taiwan stock market, because the bourse will be closed four days later, on Jan. 18, for the Chinese New Year holiday, according to market observers. After the presidential election, there will be only three trading sessions left before the local bourse is closed on Wednesday, Jan. 18 for a long Chinese New Year holiday. The bourse will resume trading on Monday, Jan. 30. For the first time ever, the presidential race is to be held before the Chinese New Year holiday, and just one week away. Market observers said that few investors would risk making bold investments on the bourse within the short trading sessions after the election and before the closure of the bourse for the Lunar New Year.

If President Ma Ying-jeou wins his re-election bid, the local bourse may see a celebrative rally. And if Democratic Progressive Party’s presidential candidate Tsai Ing-wen wins the race, then the bourse may tumble due to uncertainties over the DPP administration’s ties with Chinese authorities.