Taiwan stocks broke above the key 10,000 level for the first time in two years on Tuesday as retail investors piled in behind foreign ones, but profit-taking erased most of the early gains.
Taiwan stocks broke above the key 10,000 level for the first time in two years on Tuesday as retail investors piled in behind foreign ones, but profit-taking erased most of the early gains. The 10,000-points milestone came after Taiwan’s exports for April on Monday showed continued recovery for the trade-reliant economy with a surge in imports last month signaling the momentum would stay.
Foreign investors remain net buyers in stocks as the Taiwan dollar keeps its pole position as Asia’s strongest currency so far this year. As of 0238 GMT, the main TAIEX index was up 0.1 percent to 9,950.50, falling back from its session high so far of 10,001.94. It was the index’s highest level since April 28, 2015, when it reached 10,014.28.
The index closed 0.4 percent higher in the previous session, settling up for 10 out of the past 11 trading sessions.”The direction is up, but only if the index can really stay above the 10,000 level,” said Leon Chu, a manager with Franklin Templeton SinoAm Securities Investment Management in Taipei. Chu said the inflows aren’t broad-based into Asia, so Taiwan shares would be vunerable to short-term profit taking, depending on the global situation.
The electronics subindex rose 0.6 percent, while the financials subindex lost 0.2 percent. The Taiwan dollar softened T$0.004 to T$30.170 per U.S. dollar.