Profit taking in store for the Taiwan stock market
(RTTNews) – Taiwan’s stock market has finished higher in four straight sessions, jumping nearly 700 points or 4.4% along the way. The Taiwan Stock Exchange is now just below the 16,300 plateau, although it is expected to consolidate on Thursday.
Global forecasts for Asian markets suggest consolidation in profit taking, with oil and retail stocks leading the way lower. European and American markets were down and Asian markets should follow suit.
The TSE ended sharply higher on Wednesday after gains in financial stocks, technology stocks and plastics companies.
For the day, the index climbed 240.77 points or 1.50% to end at 16,296.86 after trading between 16,172.80 and 16,316.58.
Among assets, Cathay Financial rose 2.85%, while Mega Financial accelerated 2.88%, CTBC Financial collected 2.35%, Fubon Financial jumped 3.41%, First Financial soared 3.33%, E Sun Financial soared 3.50%, Taiwan Semiconductor Manufacturing Company strengthened 1.51%, United Microelectronics Corporation jumped 1.60%, Hon Hai Precision jumped 1.90% , Largan Precision was up 0.31%, Catcher Technology was up 0.96%, MediaTek was up 1.66%, Delta Electronics was up 2.67%, Novatek Microelectronics was up 0.13%, Formosa Plastics rose 1.46%, Nan Ya Plastics gained 1.48%, Asia Cement lost 0.22% and Taiwan Cement rose 0.24%.
Wall Street’s lead is brutally negative as major averages opened lower on Wednesday and saw losses accelerate as the day wore on, ending deep in the red.
The Dow Jones fell 1,164.52 points or 3.57% to end at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73% to close at 11,418.15 and the S&P 500 fell 165.17 points or 4.04% to end at 3,923.68.
Retail stocks led markets lower, with the Dow Jones US Retail Index plunging 7.7% to its lowest closing level in nearly two years. Target (TGT) posted a particularly large loss after the discount retailer reported quarterly results that fell short of expectations.
Substantial weakness was also visible among transportation stocks, as evidenced by the 7.4% drop in the Dow Jones Transportation Average. Housing inventories also saw significant weakness during the day, dragging the Philadelphia housing sector index down 4.6%.
In economic news, the Commerce Department noted a slight decline in new residential construction and building permits in April.
Crude oil futures stabilized on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid growing prospects for deeper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate crude oil futures ended down $2.81, or about 2.5%, at $109.59 a barrel.
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