Taipei--Investors in the local main board raked in about NT$420,000 (US$13,384) in profit on average in the year of the monkey after the market closed Tuesday, the last trading session of the year on the lunar calendar, statistics show.
On Tuesday, the weighted index on the Taiwan Stock Exchange (TWSE) closed at 9,447.95 points, up 1,384.95, or 17.18 percent, from Feb. 3, 2016, the last trading day of the year of the goat.
Due to the strong showing in the year of the monkey, market capitalization of the local main board hit NT$27.74 trillion, up NT$4.06 trillion from the year of the goat. Based on the number of 9.59 million investors in Taiwan, the increase in market cap translated into gains of NT$424,100 on average in the year.
During the year of the monkey, the local main board was largely boosted by strong foreign institutional buying to make such a significant breakthrough, although the weighted index suffered visible corrections in May, analysts said.
The analysts said that while the weighted index encountered some volatility in reflection of a referendum held by the United Kingdom in June to exit the European Union and the U.S. presidential election in November, the local market soon staged a rebound to regain its footing.
It was the fourth time the weighted index had closed above the 9,000-point mark at the end of a year on the lunar calendar in 17 years.
On Feb. 1, 2000, the last trading day of the year of the rabbit, the weighted index ended at 9,856.39 points.
On Jan. 28, 2011, the last trading session of the year of the tiger, the weighted index closed at 9,145.35 points.
On Feb. 13, 2015, the last trading day of the year of the horse, the weighted index ended at 9,529.51 points.
In the past 12 years on the lunar calendar, the weighted index on the main board rose for seven years and fell in the remaining five years.
The local equity market will be closed between Wednesday and Feb. 1. Feb 2 will be the first trading day of the year of the rooster.
Analysts said that on expectations of further foreign fund inflows into the region, the local main board is likely to benefit from liquidity-driven gains once trading resumes after the Lunar New Year holiday.
Source: Focus Taiwan News Channel