Taiwan’s stock market took a nearly 1% dip (0.77%) on Monday as new reforms were implemented on the TAIEX.
For the first time in history, the Financial Supervisory Commission lifted the daily stock trading fluctuation cap from 7% to 10%. It also increased the number of stocks available for day trading from 200 to 435. The measures, which constitute Taiwan’s biggest security market reform in 26 years, went into effect on Monday.
Analysts say that the move could help push the market toward the 10,000 mark and boost trade volume. However, the market instead closed down 75.38 points on Monday, ending the day at 9,625.
Deputy Finance Minister Wu Tang-chieh said that the fall was on the heels of weak performance in the European and American stock markets. He said that the TAIEX needs to be monitored for a longer period of time in order to determine the effects of the new reforms.
Wu said that increasing the fluctuation cap to 10% is in keeping with international trends, and that it will enable Taiwan’s stock market to keep up with other world bourses.