Wu: No govt action on stock market fall
Updated: 2010-05-08 07:18
(HK Edition)
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"Premier" Wu Den-yih Friday, called on investors to stay calm and to refrain from panic, after panic selling hit the Taiwan stock exchange Thursday.
The government will not issue any policy instructions arising from recent sharp fluctuations on the Taiwan Stock Exchange because it wants the bourse to develop in a healthy manner, Wu added.
Wu was responding to press inquiries about a possible government response after the weighted price index fell nearly 200 points at the open earlier in the day in reaction to drastic falls on almost all the world's stock markets due to concern about the national debt crisis in Greece.
Stressing that the government's main role in stock trading is to prevent irregularities and scandals, Wu said the Cabinet is focused on creating a favorable economic environment for healthy stock market development.
Investors have pulled "modest" amounts of money from equity funds investing in Asia, in the week ended May 5. Funds focused on Taiwan recorded the biggest outflows since the third quarter of 2009, according to EPFR Global.
Wu said that, despite the global concern over the Greek credit crisis, there were many encouraging indications for Taiwan's economy.
Taiwan's exports rose 47.8 percent in April from a year earlier, the "Ministry of Finance" said in Taipei today. The median of 13 estimates in a Bloomberg News survey was for a 52.7 percent gain.
China Daily/CNA
(HK Edition 05/08/2010 page4)