Taiwan’s Taiex rebounded 4.94% Monday after a steep weekly decline, following the National Financial Stabilization Fund committee’s decision to let its executive secretary support the market if needed.
The benchmark closed at 41,661.70, a gain of 1,960.06 points from Friday, Taiwan Stock Exchange figures show. CNA described the advance as the index’s second-largest one-day point gain; exchange records show a larger 3,186.45-point increase on July 31.
The committee made its decision Friday, Nov. 6, authorizing the executive secretary to deploy fund resources as circumstances warrant. The Ministry of Finance’s Nov. 6 announcement disclosed neither a spending amount nor any share purchases.
The fund said the index had dropped 5,510 points, or 12.19%, during Nov. 2-6. It identified foreign investor selling and global political and economic uncertainty as sources of pressure. The fund also pointed to Taiwan’s large technology weighting and the market’s close connection to the Philadelphia Semiconductor Index.
EconoTimes reported an earlier Taiex gain on Oct. 21.
Taiwan Semiconductor Manufacturing Co. (TSMC) rose NT$100 a share Monday to close at NT$2,235, exchange records show.
Separately, the Financial Supervisory Commission (FSC) imposed stricter short-selling conditions effective Monday. The cap on intraday sell orders using borrowed shares fell to 3% of a security’s average daily volume over the prior 30 trading days, from 30%. The required short-sale margin increased from 90% to 130%, while the volume cap has exceptions for specified hedging and market-making activity.
Hua Nan Securities analyst Kevin Su linked stronger investor sentiment to the prospect of government intervention, CNA reported.
The Bureau of Labor Statistics is scheduled to release October U.S. consumer price index data Tuesday, Nov. 10, at 8:30 a.m. ET.
