Taiwan stocks rose 0.65 percent on Monday, with banks gaining amid investor optimism the government will boost the stock market In the months ahead of the presidential election. Banking shares were up 1.38 percent, on hopes the government will be using its funds to buy stocks in the banking sector, of which half is controlled by the government.
"Investors are looking for banking and other sectors that would give them peace of mind before the election. The government's funds tend to buy banking stocks head of major elections," said Simon Liu, deputy investment officer of Polaris Group's fund arm. "The main index, historically, tends to rise rather than fall six months ahead of the presidential poll," he said. Howver, selling pressure will be emerging at the 9,200 point level due to technical resistance, Liu added. The broader market finished 58.25 points higher at 9,035.48. Among the top winning sectors were shipping and cement, up 1.8 percent and 2.5 percent, respectively. Taiwan will hold the four-year-term presidential election in January next year.
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