Taiwanese Stocks Advance on Government Fund Speculation
Taiwanese shares rose on speculation government funds may have supported stocks after the benchmark index fell as much as 1.6 percent in the morning.
The Taiex index advanced 0.2 percent to 7,179.64 at the close, with 462 stocks gaining and 230 declining. Hon Hai Precision Industry Co., which has the second-largest weighting on the benchmark index, jumped 1.2 percent. Hiwin Technologies Corp. (2049), a ball-bearing maker, slumped 6.9 percent after it was downgraded at HSBC Holdings Plc.
“Government funds may have supported stocks in the morning, though it’s unlikely the stabilization fund was used,” Diana Wu, a vice-president at Capital Securities Corp., said by phone in Taipei.
Tseng Ming-chung, deputy finance minister, didn’t immediately answer two phone calls seeking comment. Taiwan’s Financial Supervisory Commision said in a statement on its website on Oct. 30 stocks were affected by global uncertainty and it will monitor developments in the stock market and take measures when appropriate.
The gauge dropped 7.1 percent last month, the most since November 2011. The government cut its 2012 growth estimate to 1.05 percent yesterday from 1.66 percent, and said the economy may expand 3.09 percent in 2013, less than a previous prediction of 3.67 percent.
Thirty-day volatility in the Taiwan gauge was at 10.6, lower than this year’s average of 16.7, according to data compiled by Bloomberg. About 2.8 billion shares changed hands in the Taiwan gauge yesterday, compared to this year’s average of 3.1 billion. Trading volumes were about 8.4 percent higher than the 30-day average for the Taiex Index.
To contact the reporter on this story: Weiyi Lim in Singapore at email@example.com