The Taiwan stock market has finished higher in four straight sessions, jumping almost 700 points or 4.4 percent along the way. The Taiwan Stock Exchange now sits just beneath the 16,300-point plateau although it’s due for consolidation on Thursday.
The global forecast for the Asian markets suggests consolidation on profit taking, with oil and retail stocks leading the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow that lead.
The TSE finished sharply higher on Wednesday following gains from the financial shares, technology stocks and plastics companies.
For the day, the index spiked 240.77 points or 1.50 percent to finish at 16,296.86 after trading between 16,172.80 and 16,316.58.
Among the actives, Cathay Financial improved 2.85 percent, while Mega Financial accelerated 2.88 percent, CTBC Financial collected 2.35 percent, Fubon Financial surged 3.41 percent, First Financial soared 3.33 percent, E Sun Financial skyrocketed 3.50 percent, Taiwan Semiconductor Manufacturing Company strengthened 1.51 percent, United Microelectronics Corporation jumped 1.60 percent, Hon Hai Precision spiked 1.90 percent, Largan Precision rose 0.31 percent, Catcher Technology advanced 0.96 percent, MediaTek climbed 1.66 percent, Delta Electronics rallied 2.67 percent, Novatek Microelectronics perked 0.13 percent, Formosa Plastics improved 1.46 percent, Nan Ya Plastics gained 1.48 percent, Asia Cement shed 0.22 percent and Taiwan Cement increased 0.24 percent.
The lead from Wall Street is brutally negative as the major averages opened lower on Wednesday and saw the losses accelerate as the day progressed, ending deep in the red.
The Dow plummeted 1,164.52 points or 3.57 percent to finish at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73 percent to close at 11,418.15 and the S&P 500 tumbled 165.17 points or 4.04 percent to end at 3,923.68.
Retail stocks led the markets lower, with the Dow Jones U.S. Retail Index plunging 7.7 percent to its lowest closing level in almost two years. Target (TGT) posted a particularly steep loss after the discount retailer reported quarterly earnings that missed expectations.
Substantial weakness was also visible among transportation stocks, as reflected by the 7.4 percent drop by the Dow Jones Transportation Average. Housing stocks also saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 4.6 percent.
In economic news, the Commerce Department noted a modest decrease in new residential construction and building permits in April.
Crude oil futures settled lower on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.
Market Analysis
Profit Taking In Store For Taiwan Stock Market
2022-05-19 00:30:16
