Taipei, Sept. 7 (CNA) The Financial Supervisory Commission (FSC) officially announced Friday that the local equity market will abolish so-called "make-up Saturdays" from next year, meaning that the stock market will no longer open on compensatory working days on weekends.
The last "make-up Saturday" will fall on Dec. 22, which will make up a lost working day for the next Lunar New Year holiday.
Under Taiwan's current work regulations, when a holiday period is extended by adding an extra day, a Saturday is usually designated as a compensatory working day.
The abolishment of the make-up Saturdays has been planned by the FSC for some time, with Chairman Wellington Koo (???) repeatedly advocating the change.
To push for the change, the FSC said, the commission will work with related agencies and organizations in the local securities industry to help investors gain a better understanding of the abolition of the compensatory sessions.
Currently, Taiwan is the only stock market in the world to open on a compensatory working day on Saturday.
The FSC said the change will help the local equity market live up to international standards.
Market analysts have long complained that with many foreign institutional investors away over the weekend, turnover of the make-up Saturdays is small.
On the most recent make-up Saturday on March 31, turnover totaled only NT$76.78 billion (US$2.50 billion) on the main board, well below the daily average of NT$123.98 billion for that month, according to the Taiwan Stock Exchange.
The FSC said it was aware of slow market performance on past make-up Saturdays, which has provided little help to investors to map out their future investment strategies. In addition, such sluggish sessions hurt operational efficiency of the local securities industry.
The commission said that after consulting with the local securities industry, the practice of compensatory Saturday sessions will end next year with no stock delivery, even if the local banking sector works on those days.
Source: Focus Taiwan News Channel