Taipei-Shares in Taiwan moved higher Monday on renewed buying interest after the political uncertainty created by Taiwan's presidential election campaign came to an end with President Tsai Ing-wen's (???) re-election victory on Saturday.
Buying in select stocks favored by Tsai's industrial development policy, such as in the green energy and defense industries, got a boost, they said.
Foreign investors continued to move funds into the market, helping large cap stocks post gains because of the extra liquidity throughout the session, dealers said.
The weighted index on the Taiwan Stock Exchange (TWSE), the Taiex, closed up 88.77 points, or 0.74 percent, at the day's high of 12,113.42, off an earlier low of 12,037.24. Turnover was NT$142.321 billion (US$4.76 billion).
The market opened up 0.37 percent on follow-through buying from a session earlier, and momentum accelerated as investors were buoyed by the end of political uncertainty and a strong Taiwan dollar against the greenback, indicating further foreign fund inflows, dealers said.
While the Taiex stayed in positive territory for most of the session, buying was even more apparent late in the trading day, dealers added.
"Saturday's election results eliminated non-economic concerns among many investors, so they were more willing to buy today," Concord Securities analyst Kerry Huang said.
"With Tsai winning her second term, many investors expect her to continue her economic policies, so select stocks related to her '5 plus 2' program attracted strong buying today," Huang said.
The "5 plus 2" initiative is aimed at transforming Taiwan into an Asian Silicon Valley, develop the biotechnology, green energy, smart machinery, and defense industries, and promote new agriculture and the circular economy.
Century Iron and Steel Industrial Co. and Hsin Kuang Steel Co., both of which are keen to invest in offshore wind power development, moved sharply higher, rising 3.42 percent and 2.39 percent, respectively, to close at NT$72.50 and NT$32.10.
In terms of national defense, shipbuilder CSBC Corp., Taiwan, rose 0.95 percent to close at NT$26.50, while Aerospace Industrial Development Corp. ended unchanged at NT$34.95, after coming off a high of NT$36.70 on profit taking.
"Foreign institutional investors kept moving funds into the local market," Huang said, referring to the losses incurred by the U.S. dollar, which fell below the NT$30 mark against the Taiwan dollar Monday.
"The stock market saw rising liquidity on further foreign fund inflows," Huang said. "What foreign investors did was to put their money into market heavyweights."
Among the large-cap tech stocks, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, rose 0.59 percent to close at NT$341.50, with 30.62 million shares changing hands.
Also in the electronics sector, which closed up 0.74 percent, iPhone assembler Hon Hai Precision Industry Co. gained 0.67 percent to close at NT$89.60, and dynamic random access memory (DRAM) chip maker Nanya Technology Corp. added 1.42 percent to end at NT$85.50 on an improved outlook for the DRAM market.
Bucking the upturn on the broader market, Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., fell 0.30 percent to close at NT$5,050.00 as investors locked in gains built in the stock in previous session.
In the financial sector, which rose 1.17 percent because of its relatively low valuation, Cathay Financial Holding Co. rose 1.90 percent to close at NT$42.85, and Fubon Financial Holding Co. added 0.86 percent to end at NT$46.80.
Huang cautioned, however, that the market remained constrained by global trade concerns.
"Although the United States and China are scheduled to sign a phase-one trade deal on Jan. 15, many investors still want to see the contents of the agreement," Huang said.
According to the TWSE, foreign institutional investors bought a net NT$10.75 billion in shares Monday after a net buy of NT$6.90 billion on Friday.
Source: Focus Taiwan News Channel