♥♥♥咩樂寶寶學習網誌♥♥♥

With the end of market intervention by the National Stabilization Fund's, investors were especially cautious on Thursday. After opening up 28 points the TaiEx hardly moved, until later in the day when an order of NT$3.2 billion caused a surge upwards. The market finished the day on 4694 with from a disappointing trading volume of NT$62.1 billion.



Investors experienced a roller coaster on the TaiEx this morning as the index went up and down within a narrow range for most of the day.



After opening up 28 points on December 18th, the market moved little, falling no lower than 4625 points. With buyers moving in after 1PM and major orders for NT$3.2 billion near the end of the day the TaiEx finished the day up 46 points on 4694 points with a reduced trading volume of NT$62.1 billion.



If the Central Bank continues to cut interest rates then capital could flow back to the stock market. If the Central Bank leaves rates as they are now, then we will have to wait for signs of a recovery before the TaiEx improves markedly.



With the New Taiwan Dollar appreciating rapidly, construction, steel and land shares all performed well, with shares in the Shinning Group, Far Glory Group and Taiwan Tea Corp all rose the maximum permitted on the day. Taiwan Fertilizer and China Steel also did well. Unfortunately electronics shares were particularly weak, with TSMC shares hardly moving but closing down one dollar on the day at NT$45. The caution following the retreat of the National Stabilization Fund was visible all day.



In the short term investors are not going to chase higher prices. I also think that there is a chance financial shares will rise on Friday, in fact if capital returns they could well have the chance to lead a rally.



Foreign investors bought NT$2.04 billion, with investment trusts and brokers following suit by buying NT$850 million and NT$250 million respectively, for purchases on the day of NT$3.154 billion.



However with the appreciation of the New Taiwan Dollar, trading volume failed to increase making it unlikely the TaiEx market will break through the 5000 barrier any time soon.



Andrew Wilson, EBC News, Taipei