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Taiwan Shares Likely To Head South Again On Wednesday

The Taiwan stock market picked up just a handful of points on Tuesday - but that was enough to snap the four-day losing streak in which it had surrendered almost 160 points or 1.5 percent. The Taiwan Stock Exchange now rests just above the 10,685-point plateau although it figures to see renewed selling pressure again on Wednesday.

The global forecast for the Asian markets is negative thanks to uncertainty over U.S. tax reform and a decline in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The TSE finished slightly higher on Tuesday following mixed performances from the financial shares and the technology stocks.

For the day, the index added 3.26 points or 0.03 percent to finish at 10,687.18 after trading between 10,659.29 and 10,742.61 on turnover of 123.96 billion Taiwan dollars.

Among the actives, Cathay Financial shed 0.50 percent, while Fubon Financial collected 0.10 percent, Mega Financial gained 0.21 percent, Largan Precision tumbled 2.02 percent, AU Optronics picked up 0.41 percent, Hon Hai Precision dropped 0.93 percent, Innolux jumped 1.17 percent, Taiwan Semiconductor Manufacturing Company added 0.21 percent and Taiwan Cement was unchanged.

The lead from Wall Street is soft as stocks opened lower on Tuesday, regained some ground but still finish in the red - offsetting modest gains from the previous session.

The Dow shed 30.23 points or 0.13 percent to 23,409.47, while the NASDAQ lost 19.72 points or 0.29 percent to 6,737.87 and the S&P 500 fell 5.97 points or 0.23 percent to 2,578.87.

Uncertainty about the outlook for the Republican tax reform proposal weighed as the House prepares to vote on their bill later this week. The House bill has significant differences from the Senate version, raising concerns about whether GOP lawmakers will be able to combine the legislation.

In economic news, the Labor Department reported that producer prices increased more than expected in October - as did core producer prices.

Energy stocks showed a significant move to the downside on Tuesday amid a steep drop by the price of crude oil - which tumbled $1.06 to $55.70 a barrel for December delivery.

by RTT Staff Writer

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