Скачать или смотреть Taiex rebounds after National Stabilization Fund announces plans to intervene

Taiwan shares rebounded to close above 14,440 points today after yesterday''s decision to allow the National Stabilization Fund to enter the market. The weighted index surged by as much as 453 points during intraday trading, and institutional investors bought a net NT$11.1 billion. Let''s hear from an analyst.

Edward Chen
First Capital Management
We must first take a look at when the National Stabilization Fund will step in. We think that will happen in the next half year. So before the end of the year, we think there is no need to worry too much about big falls. In the short-term, we can first take a look at the 20-day average. The 20-day average is at 14,900 points. At this point, if it goes above that, investors will start to buy back the stocks they sold. Once the 20-day average surpasses that, it means that the investors from the previous 30 days are out of danger. Then, you can start looking at the 60-day average.

The analyst says the market won''t fully recover until the 60-day average surpasses 15,500 points. He adds that it could be beneficial to have additional stocks at hand over the next few days, as the U.S. is set to announce its latest CPI data on Wednesday, and TSMC and Largan Precision are to hold their investor conferences on Thursday.