Market Commentary and Intraday News

Taiwan Market May Snap Losing Streak On Tuesday

231 days ago

(RTTNews) - The Taiwan stock market has closed lower now in seven straight sessions, plummeting more than 370 points or 5.2 percent in that span. The Taiwan Stock Exchange closed just above the 7,090-point plateau, and now investors are looking for a measure of traction when the market opens on Tuesday.

The global forecast for the Asian markets suggests little movement, devoid of any lead from the United States but for concern over Hurricane Sandy. The major stock markets in New York City announced Monday that trading will remain on hold for a second consecutive day on Tuesday in the face of the record-setting storm. The European markets were mostly lower on Monday, and the Asian markets may open in similar fashion on Tuesday.

The TSE finished modestly lower again on Monday as losses from the plastic, finance, paper, food, textile, construction and technology sectors were offset slightly by support from the cement stocks.

For the day, the index dipped 42.39 points or 0.59 percent to finish at 7,091.67 after trading between 7,091.19 and 7,165.10 on turnover of 70.48 billion Taiwan dollars. There were 2,844 decliners and 1,529 gainers, with 353 stocks finishing unchanged.

Among the actives, Taiwan Semiconductor Manufacturing Co. added 0.92 percent, while Advanced Semiconductor Manufacturing jumped 4.47 percent, Asustek Computer climbed 1.13 percent, MediaTek spiked 3.45 percent, Taiwan Cement collected 1.37 percent and Formosa Petrochemical gained 0.72 percent.

There is no lead from Wall Street as the markets were closed for at least the first two days of the week by the storm. NYSE Euronext (NYX), the parent of the New York Stock Exchange, said it will close its markets in coordination with all U.S. equities, bonds, options and derivatives markets on Tuesday.

The company said it intend to re-open the U.S. markets Wednesday morning if conditions permit. Weather has not forced the New York Stock Exchange to close for two consecutive days since the Great Blizzard of 1888.

Similarly, NASDAQ OMX Group (NDAQ) said the NASDAQ Stock Market and other NASDAQ OMX-owned U.S exchanges and markets will remain closed on Tuesday. NASDAQ also said it expects all NASDAQ OMX-owned U.S. exchanges and markets to open as normal on Wednesday.

Treasuries moved modestly higher over the course of an abbreviated trading session on Monday, extending the strong upward move seen last Friday.

Bond prices moved to the upside in early trading and managed to remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3 basis points to 1.72 percent.

U.S. crude oil settled lower Monday on demand concerns on the threat posed by Hurricane Sandy with a number of refineries on reduced operation or have shut down production in anticipation of the event. The dollar also strengthened against a basket of major currencies, with investors finding it a safe haven even as the hurricane nears landfall.

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