Stability mechanism keeps TAIEX afloat: dealers


CNA

TAIPEI — Government funds were said to lend support to the local bourse yesterday, helping the market fend off downward pressure triggered by losses on Wall Street and European markets overnight, dealers said.

Buying in the financial sector, in particular, offset selling in select large-cap stocks in other sectors and pushed the TAIEX back above the 7,600-point mark by the end of the session, dealers said.

Share prices closed up 17.69 points, or 0.23 percent, at 7,622.69, after moving between 7,528.04 and 7,632.73. Turnover totaled NT$74.59 billion during the session.

The market opened down 2.29 points and moved to the day’s low as investors took cues from the latest losses on Wall Street and in the European markets amid renewed worries over the debt crisis in the eurozone, dealers said.

The fears that Spain may seek a bailout due to rising bank bad loans led investors to dump holdings. Meanwhile, concerns over the government’s plan to impose a capital gains tax on stock investments continued weighing on market sentiment, dealers said.

After the index fell below 7,600 points, bargain-hunting emerged, focusing on financial stocks, which reversed the earlier losses and vaulted the index back to positive territory, dealers said.