Shares in Taiwan edged up at Wednesday’s close with its transport, iron and steel, and plastic sectors on the lead.
Taiwan Weighted was up 0.83 percent, hitting an all new 52-week high before the trading day ended.
The session’s top performing stocks include Hai Kwang (TW: 2038) which gained 9.99 percent or 0.70 points to 7.71. Also included in the list of gainers are Shihlin Paper (TW: 1903) which was up 10.00 percent or 3.45 points at 37.95 and Yieh Hsing Ent (TW: 2007) which added 10.0 percent or 0.54 points closing at 5.94.
The biggest losers of the day include C Sun Mfg (TW: 2467) which slumped 4.50 percent or 1 point to 21.20 and I-Hwa Industrial Co Ltd (TW: 1456) which was down 6.15 percent or 0.80 points finishing at 12.20. Meanwhile, Tatung Co Ltd (TW: 2371) declined 7.08 percent or 1.25 points as it changed hands at 16.40 before the closing bell.
At the Taiwan Stock Exchange, 612 stocks on the green territory outnumbered the 189 stocks trading on the red, while 88 stocks remained flat.
According to dealers, investors already hemmed in gains of earlier trade as they anticipate the technical resistance looming as the index neared 9,800 points.
Despite the country’s old economy sector closing mixed, a few large capitalization high technology stocks, such as Hon Hai Precision Industry Co., the world’s largest contract electronics maker and also smartphone camera lens supplier Largan Precision Co., inched up, propping up the market in general, the dealers also added.
The index’s earlier gains were mainly a reflection of the record highs set by the S&P 500 index, the tech-heavy Nasdaq, and the Dow Jones Industrial Average as these US indices lean on US President Donald Trump’s grand plans for a tax cut, according to the same sources.
Inching its way to the 9,800 mark, a sellout broke in, only to push the index on a further rally and hit its intraday high just before the trading day ended.
The rally was also due to Taiwan gaining a little extra positivity regarding how its economy will fare over the next months of the fiscal year, consequently hoisting its growth projections for 2017 up. Taiwan also revised some of its growth figures per quarter as offshore demand for tech parts strengthen and domestic consumer spending improved, inducing recovery for the island’s economy.
However, economists warned the market of the fleeting nature that this rally might be after all, as the recent upturn was highly likely caused by the smartphone parts production.
The positivity on Taiwan’s growth outlook became evident despite looming market doubts about how international trade will fare as US President Donald Trump’s policies unfold.
Although a solidifying US economy is likely to help Taiwan as demand for its exports will also grow, it could also likely hurt the island’s growth as the US show a more protectionist stance on trade especially against mainland China.
Taiwan’s inflation forecast for 2017 was raised to 1.08%, from a previous view of 0.75% as updated by the Directorate General of Budget, Accounting and Statistics.
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