Taiwan stocks closed down 0.91 percent on Monday, but construction shares surged after media reported the government could soon announce a plan to relax restrictions on Chinese investment in Taiwan real estate.
The main TAIEX fell 74.45 points to end at 8,110.20, hurt by a 1.12 percent slide of the electronics sub-index on concerns the US subprime crisis will hinder exports of Taiwan's technology products to the United States.
The benchmark index was down 4.7 percent so far this year. The construction sub-index shot up 4.23 percent, with Cathay Real Estate Development Co Ltd and Farglory Development both surging the daily 7-percent limit. "There is plenty of liquidity in the market chasing stocks. Real estate shares are an attractive target on investor hopes that cross-strait ties will improve substantially," said Brent Lin, who manages T$17.7 billion (US $548 million) for Capital Investment Trust Corp.
The market would trade at a narrow range this week, though more upside for real estate-related stocks are likely, Lin said. Taiwan is fast-tracking two stalled initiatives to boost economic ties with China, as the ruling party seeks to revive its chances of winning presidential elections in March, according to local media.
The financial sub-index slipped 0.29 percent after media reported Singapore's DBS Group was among the three banks that interested in acquiring Taiwan's failed Bowa Bank. Total trading eased to T$142.0 billion (US $4.4 billion) from T$165.7 billion a session earlier.
Asustek Computer, the world's top motherboard maker, jumped 0.99 percent. High Tech Computer (HTC), the world's top smartphone maker, rose 2.24 percent. HTC said it expected its first-quarter performance to be better than a year ago, company chief executive Peter Chou told reporters on Friday.
Comments
Comments are closed.