logo
Plus   Neg
Share
Email

Taiwan Stock Market Tipped To Reverse Wednesday's Losses

The Taiwan stock market on Wednesday ended the five-day winning streak in which it had advanced more than 490 points or 2.9 percent. The Taiwan Stock Exchange now sits just above the 17,200-point plateau although it's tipped to find renewed support on Thursday.

The global forecast for the Asian markets is positive after a couple of days of weakness, although sinking crude oil prices may cap the upside. The European and U.S. markets were up and the Asian markets are tipped to follow suit.

The TSE finished modestly lower on Wednesday as losses from the financial shares and technology stocks were mitigated by support from the cement companies.

For the day, the index lost 121.76 points or 0.70 percent to finish at 17,202.11 after trading between 17,167.39 and 17,282.76.

Among the actives, Cathay Financial dropped 0.97 percent, while Mega Financial shed 0.77 percent, Fubon Financial lost 0.65 percent, E Sun Financial sank 0.74 percent, Taiwan Semiconductor Manufacturing Company retreated 1.66 percent, United Microelectronics Corporation declined 1.29 percent, Hon Hai Precision tumbled 1.64 percent, Largan Precision tanked 2.09 percent, Catcher Technology dipped 0.24 percent, MediaTek skidded 1.00 percent, Formosa Plastic was down 0.91 percent, Asia Cement spiked 2.96 percent, Taiwan Cement skyrocketed 7.12 percent and CTBC Financial and First Financial were unchanged.

The lead from Wall Street is solid as the major averages shook off early weakness on Wednesday and finished firmly in the green, snapping a two-day slide.

The Dow spiked 316.01 points or 0.93 percent to finish at 34,137.31, while the NASDAQ jumped 163.95 points or 1.19 percent to end at 13,950.22 and the S&P 500 climbed 38.48 points or 0.93 percent to close at 4,173.42.

Despite concerns about high valuations, traders have largely been reluctant to sell stocks amid worries about missing out on further upside.

Stocks linked to the economy reopening saw significant strength, while shares of Netflix (NFLX) moved sharply lower after the company reported much weaker than expected subscriber growth.

Crude oil futures declined sharply on Wednesday amid rising concerns about the outlook for energy demand due to rising coronavirus infections in India. Data showing an unexpected uptick in U.S. crude inventories also weighed on oil prices. West Texas Intermediate Crude oil futures for June fell $1.32 or 2.1 percent at $61.35 a barrel, the lowest close since April 13.

Closer to home, Taiwan will release March unemployment figures later today; in February, the jobless rate was 3.73 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT