Taiwan Stocks Rise Most in Two Weeks on Government Buying ReportBloomberg News
Taiwan’s stocks rose the most in two weeks on speculation that government funds are buying equities after a selloff last week triggered by concern the construction of a nuclear power plant would be halted.
The Taiex index added 0.4 percent to 8,809.71 at the close, the biggest gain since April 15. Inotera Memories Inc. and Largan Precision Co. jumped more than 6 percent. Pou Chen Corp., a maker of sports shoes, gained 1 percent as production at a factory of its Hong Kong unit resumed after a strike ended.
The benchmark index slumped 2.2 percent last week, the biggest weekly loss since August, amid speculation the halt in construction of the nuclear power plant would lead to a shortage of power supply, hindering economic growth. Taiwan’s ruling Kuomintang party today agreed with the opposition on suspending construction on the nuclear facility after a weekend demonstration attracted tens of thousands of protesters.
The Taiex dropped as much as 1.2 percent earlier today before rebounding after the United Evening News reported that institutional investors including four major government funds and insurers bought shares. The newspaper didn’t say where it got the information.
Taiwan’s Bureau of Labor Funds Deputy Director-General Liu Li-ju said the bureau, which manages labor retirement, pension and insurance funds, doesn’t disclose stock transactions.
— With assistance by Shidong Zhang