logo
Plus   Neg
Share
Email

Slightly Higher Open Called For Taiwan Shares

The Taiwan stock market bounced higher again on Monday, one session after it had ended the two-day winning streak in which it had gathered more than 140 points or 1.3 percent. The Taiwan Stock Exchange now rests just above the 10,875-point plateau and it's expected to open slightly higher again on Tuesday.

The global forecast for the Asian markets is positive on the anticipation of solid earnings news. The European and U.S. markets were up and the Asian bourses are also tipped to open in the green.

The TSE finished modestly higher on Monday as gains from the financial shares and technology stocks were limited by weakness from the cement companies.

For the day, the index added 52.08 points or 0.48 percent to finish at 10,876.43 after trading between 10,769.57 and 10,880.56.

Among the actives, Cathay Financial was up 0.12 percent, while Mega Financial shed 0.47 percent, CTBC Financial collected 0.24 percent, Fubon Financial fell 0.23 percent, First Financial rose 0.22 percent, Taiwan Semiconductor Manufacturing Company jumped 1.60 percent, United Microelectronics Corporation spiked 2.05 percent, Hon Hai Precision added 0.64 percent, AsusTek Computer gained 0.70 percent, Catcher Technology advanced 0.88 percent, MediaTek dropped 1.10 percent, Asia Cement eased 0.11 percent, Taiwan Cement sank 0.68 percent, Formosa Plastic perked 1.44 percent, Formosa Chemical slid 0.61 percent and Taishin Financial and Largan Precision were unchanged.

The lead from Wall Street is cautiously optimistic as stocks showed a lack of direction on Monday before the major averages finally inched higher to fresh record closing highs.

The Dow added 27.13 points or 0.10 percent to 27,359.16, while the NASDAQ rose 14.04 points or 0.17 percent to 8,258.19 and the S&P 500 gained 0.53 points or 0.02 percent to 3,014.30.

The markets saw a positive reaction to earnings news from Citigroup (C), with the financial giant reporting second quarter results that beat analyst estimates on both the top and bottom lines.

Goldman Sachs (GS), Johnson & Johnson (JNJ), JPMorgan (JPM), Kraft Heinz (KHC), IBM (IBM), Microsoft (MSFT), and America Express (AXP) are also due to report their results this week.

In economic news, the Federal Reserve Bank of New York said that regional manufacturing activity rebounded modestly in July.

Crude oil futures edged lower Monday on concerns about energy demand growth. West Texas Intermediate crude oil futures for August ended down $0.63 or 1.1 percent at $59.58 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT