Taiwan shares close up 0.36%

Shares in Taiwan reached a 15-month high in mid-session Thursday on the back of a strong performance by electronics and plastics shares.

The weighted index on the Taiwan Stock Exchange (TAIEX) closed up 33.25 points, or 0.36 percent to finish the day at 9,317.24 on a turnover of NT$63.60 billion (US$2.02 billion).

Boosted by plastics and electronics shares, the weighted index reached 9,331.89 mid-session, the highest point for 15 months, before falling slightly at close of trade.

Shares in Formosa Plastic Corp. (??) finished at NT$85, up 3.41 percent, while Nan Ya Plastics Corp. (??) closed at NT$65, up 1.72 percent.

Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, closed at NT$83.5, up 1.33 percent.

Wei Yung-hsiang (???), a manager at Taishin China Equity Fund (???????), said ample liquidity has enabled the stock market to sustain upward momentum.

However, with investors increasingly cautious turnover did not increase, which he identified as a potential worry.

Other factors to be watched include the fact that many listed companies are set to deliver their third quarter financial reports or hold shareholders' meetings.

In addition, the appreciation of the Taiwan dollar will impact the gross margin of export-oriented industries, he said.

Also, if the U.S. Fed raises interest rates in December, foreign institutional investors could leave emerging markets in Asia and return to the United States.

As a result of the above factors, Wei predicted the stock market will continue to fluctuate before the end of October.

Source: Focus Taiwan News Channel