Financial Supervisory Commission (FSC) head Wellington Ku says the time is ripe for investors to enter the stock market and buy blue-chips, since the price is low. Ku was speaking Friday after the Dow Jones Industrial Average fell by more than 1,000 points for the second time this week.
Taiwan’s stock exchange -- the TAIEX -- shed 1.49%, or almost 157 points, ending the day at 10,371.75 points. Stock markets across Asia, in Japan, South Korea, Hong Kong and Shanghai opened low on Friday, and the TAIEX dropped 300 points in early trading. But the TAIEX managed to gain back nearly half of early losses, ending the day down 157 points.
In order to ease public anxiety, Ku recommended buying stocks and holding onto them during the Chinese New Year. He said it is a “pretty good choice” as dividend yields stand at 3.6%.
“The overall economic index is pretty good. Revenues of listed companies and those whose stocks are traded over-the-counter are also good. The fluctuations in the Dow Jones were connected to fluctuations in capital. As to the Taiwan stock market, I think that now is a good time to buy stocks with good dividend yields," said Ku.
On the whole, Ku said, the fundamentals of the local stock market are still in good shape.