Taipei - Taiwan's stocks were sharply higher in early
trading Monday, rising more than 5 per cent after the seizure by the
US government of the two largest US mortgage lenders and guarantors
and on a string of measures planned by the local financial regulator
to support the market.
The Weighted Price Index of the Taiwan Stock Exchange, which
opened 4 per cent higher, continued its upward trend, rising 340
points, or 5.4 per cent, to 6,647 by mid-morning.
Dealers said the US and Taiwan measures bolstered investor
confidence, resulting in heavy buying.
Most major financial shares were up by their 7-per-cent daily
limit as the measures to be approved and announced by Taiwan's
cabinet on Thursday include relaxation of the criteria for the
buyback of treasury shares by financial holding firms.
Finance Ministry officials said Monday that other measures would
include establishing an ad-hoc committee by financial authorities to
push blue chips listed on the local stock market to launch a treasury
share system and encouraging securities and trust companies to issue
stock-based mutual funds for investment in the local bourse.
In the United States, the government announced Sunday that the
Federal Housing Financing Agency would take over Fannie Mae and
Freddie Mac as the US government sought to deflect the rising threat
of mortgage defaults to the two companies that manage nearly half of
the 12-trillion-dollar US mortgage market.
USA
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