Taiwan’s stock market benchmark has closed above 10,000 points for the first time since the dotcom boom of 2000.
Strong gains this year for technology companies, including suppliers to Apple, have helped drive the index to within 2 per cent of its dotcom era peak of 10,202.2 in February 2000.
Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry (also known as Foxconn, are both trading at record highs. Together, the pair represent almost a quarter of the weighting of the Taiex benchmark and have been instrumental in powering the market this year.
The Taiex crossed the line today with a gain of 0.3 per cent to finish at 10,001.5, leaving the index up 8.1 per cent in 2017.
Earlier this week, the Taiex traded through the big round number for the first time since late April 2015.
This most recent break is only the fifth time the Taiex has made a break above 10,000 points, and it remains to be seen just how sustainable this rally is. Previous instances – in 1990, 1997, 2000 and 2015 – have been followed soon after by corrections or steep bear markets.
The Taiex peaked at 12,495.3 in February 1990 at the end of a massive asset boom brought about by rapid growth of the “tiger” economy.
Chart courtesy of Bloomberg