Taipei, Oct. 11 (CNA)－Taiwan shares closed down 660.72 points, or 6.31 percent, at 9,806.11 Thursday on turnover of NT$205.33 billion (US$6.59 billion).
Taiwan shares plunged below the 10,000-point mark on Thursday, a day after the market was closed for the National Day holiday, falling more than 600 points in the mid-morning trading session in the wake of falling U.S. markets overnight, where the Dow Jones Industrial Average fell 831 points, its worst loss in eight months.
The benchmark weighted index on the Taiwan Stock Exchange (TWSE), or the Taiex, opened down 194.79 points at 10,272.04 before tumbling more than 500 points to below the 10,000 point mark within three minutes and continuing the downtrend, falling 662.53 points or 6.33 percent as of 11:25 a.m.
The plunge came as the Ministry of Finance (MOF) announced the stabilization fund committee could meet later Thursday to decide whether the National Stabilization Fund should enter the local equity market to prop up share prices at a time of volatility in global financial markets.
The local stock market has been under pressure amid Wall Street weakness, a weaker Chinese yuan and the local currency falling against the U.S. dollar, which has resulted in foreign exchange losses for companies listed on the local bourse.
Taiwan posted the steepest decline among markets in the Asian region last week when the Taiex fell 489.22 points, or 4.44 percent, to close at 10,517.12 Friday.
In the last session on Tuesday, the major index closed up 10.90 points, or 0.10 percent, at 10,466.83, on a technical rebound after moving between 10,428.97 and 10,503.10, on turnover of NT$120.63 billion (US$3.90 billion).
In response to the deep dive in the mid-morning trading session, Deputy Finance Minister Juan Ching-hwa, executive secretary of the stabilization fund, said at a legislative session that local shares falling below the 10,000-point mark is not a key point of consideration when deciding whether the fund should intervene in the market, but market disorder caused by irrationality among investors and a confidence crunch would be factors prompting the fund committee to authorize the stabilization fund to intervene in the market.
Meanwhile, Vice Premier Shih Jun-ji called on investors not to panic, saying that local economic fundamentals remain sound, the U.S. economy is powering ahead and the Taiex will soon bounceback over the 10,000-point mark.
Since the Taiex hit 10,007.84 points on May 23, 2017, the main board has remained above the 10,000-point level for nearly 17 months, the longest run above that level in the history of the local equity market.
any of the equal portions into which property or invested capital is divided specifically: any of the equal interests or rights into which the entire stock of a corporation is divided and ownership of which is regularly evidenced by one or more certificates
the amount of business done especially: the volume of shares traded on a stock exchange
to descend or dip suddenly
Dow Jones Industrial Average:
The benchmark weighted index on the Taiwan Stock Exchange:
Taiwan Stock Exchange(TWSE):
to fall suddenly and helplessly
a downward turn especially toward a decline in business and economic activity
Ministry of Finance (MOF):
stabilization fund committee:
National Stabilization Fund:
the common stock of a corporation
to stop (something) from falling or slipping by placing something under or against it
a tendency to change quickly and unpredictably
something (such as coins, treasury notes, and banknotes) that is in circulation as a medium of exchange
companies listed on the local bourse:
an organized market or center for trading in securities or commodities
posted the steepest decline:
phr. 跳水 、急遽下跌
Deputy Finance Minister:
to interfere with the outcome or course especially of a condition or process (as to prevent harm or improve functioning)
not governed by or according to reason
to move to action
during the intervening time
free from flaw, defect, or decay
- share Merriam-Webster Dictionary
- turnover Merriam-Webster Dictionary
- plunge Merriam-Webster Dictionary
- tumble Merriam-Webster Dictionary
- downtrend Merriam-Webster Dictionary
- equity Merriam-Webster Dictionary
- prop up Merriam-Webster Dictionary
- currency Merriam-Webster Dictionary
- bourse Merriam-Webster Dictionary
- exchange Merriam-Webster Dictionary
- deputy Merriam-Webster Dictionary
- intervene Merriam-Webster Dictionary
- irrationality Merriam-Webster Dictionary
- prompt Merriam-Webster Dictionary
- meanwhile Merriam-Webster Dictionary
- sound Merriam-Webster Dictionary