Market Commentary and Intraday News
Taiwan Stock Market May Encounter Resistance
252 days ago
(RTTNews) - The Taiwan stock market has closed higher now in back-to-back sessions, rising more than 150 points or 2 percent in the process. The Taiwan Stock Exchange closed just above the 7,480-point plateau, and now traders are expected to take a more cautious tone when the market kicks off trade on Tuesday.
The global forecast for the Asian markets suggests consolidation ahead of the Federal Reserve's upcoming monetary policy meeting. The Fed is due to announce its latest decision on monetary policy on Thursday followed by a news conference by Chairman Ben Bernanke - and there remains considerable uncertainty about whether the Fed will announce another round of quantitative easing. The European and U.S. markets ended lower and the Asian bourses are expected to open in similar fashion.
The TSE finished modestly higher on Monday following gains from the paper, construction, textile, cement, food, plastic, technology and finance sectors.
For the day, the index was up 57.83 points or 0.77 percent to finish at the daily high of 7,482.74 after trading as low as 7,435.34 on turnover of 81.36 billion Taiwan dollars. There were 2,215 gainers and 2,052 decliners, with 416 stocks finishing unchanged.
Among the gainers, Yulon Motor climbed 3.65 percent, while Taiwan Fertilizer jumped 2.72 percent, Shinkong Textile surged 6.80 percent, Kindom Construction added 3.91 percent and Highwealth Construction surged 5.07 percent.
The lead from Wall Street is negative as stocks moved mostly lower on Monday, after showing a lack of direction early in the session. The pullback came as some traders cashed in on the recent strength in the markets ahead of the Fed's two-day monetary policy meeting.
The Fed is due to announce its latest decision on monetary policy Thursday afternoon followed by a news conference by Chairman Ben Bernanke. Uncertainty about whether the Fed will announce another round of quantitative easing helped to drag stocks lower, although selling pressure remained relatively subdued.
Some negative sentiment was also generated by disappointing trade data from China, with a report showing an unexpected year-over-year drop in imports in the month of August.
Ahead of the announcement from the Fed, traders are likely to keep a close eye on Europe, as Germany's Constitutional Court is expected to rule on a request for a temporary injunction against Europe's permanent bailout fund.
Developments in Greece are also likely to remain in focus, with Greek Prime Minister Antonis Samaras reportedly having trouble getting the country's lenders to sign off on his government's proposed budget cuts.
Among individual stocks, shares of Titan Machinery (TITN) fell sharply after the farm equipment retailer reported weaker than expected second quarter earnings and cut its full-year guidance. Titan tumbled by 23.5 percent on the day.
Apparel retailer Michael Kors (KORS) also posted a notable loss after filing a registration statement with the SEC related to a proposed public offering of 20 million ordinary shares by certain shareholders.
The major U.S. averages were all down on Monday as the Dow fell 52.35 points or 0.4 percent to finish at 13,254.29, while the NASDAQ dropped 32.40 points or 1 percent to end at 3,104.02 and the S&P 500 slid 8.84 points or 0.6 percent to close at 1,429.08.
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