President urges investors to have faith in Taiwan stock market

Indonesia stock info ; President urges investors to have faith in Taiwan stock market ; Taipei, Aug. 6 (CNA) President Ma Ying-jeou on Saturday called an impromptu press conference to urge investors to be confident in Taiwan's stock market one day after the index plunged to a new low since the 2008 global financial crisis.

Ma said that he is aware many investors are concerned about the drop, and has called on Premier Wu Den-yih to keep a full grasp of the situation and to draft up contingency plans.

Following a 4.31 percent free fall of the Dow Jones Industrial Average to 11,383.68 Aug. 4, stocks on the Taiwan bourse dropped well below the year's low of 8,070 soon after the market opened Friday.

By the close of trade, the local bourse had shed 464.44 points in a 5.58 percent drop to close at 7,853.13 -- the biggest single-day fall since Nov. 7, 2008.

In a three-minute speech, Ma explained that Taiwan is an export-oriented economy and thus its stock market is easily influenced by the global financial climate.

But he countered that the country's economy is doing quite well, and the outlook is still optimistic.

Citing figures released by Directorate-General of Budget, Accounting and Statistics last month, the president said Taiwan expects economic growth of 5.01 percent this year, which is higher than the 3 percent predicted for the world.

To restore investors' confidence, he further ensured that the government will not take the alarming situation lightly and will be fully prepared to react on possible scenarios.

Ma has been in close contact with the premier and various ministers since Friday about the stock market plunge, according to Fan Chiang Tai-chi, a presidential spokesman. (source focustaiwan.tw )


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