Singapore to launch Taiwan index on Jan. 9

Singapore to launch Taiwan index on Jan. 9

SINGAPORE (AFP): Singapore authorities said yesterday they
would launch on Jan. 9 options and futures contracts allowing
investors to hedge against movements on the Taiwan stock
exchange.

The Singapore International Monetary Exchange Ltd. (SIMEX)
said a March 1997 contract would be the first to be listed on
launch day.

Trading would begin 15 minutes before the opening and end 15
minutes after the close of the Taiwan stock market.

Compiled by Morgan Stanley Capital International (MSCI), the
MSCI Taiwan Index will include 77 component stocks covering 67
percent of the Taiwan stock market, the SIMEX said in a
statement.

The index will join the established Nikkei 225 contracts on
SIMEX, the world's first exchange to list a futures contract
linked to the Japanese stock market.

SIMEX said the new index would have "an almost 100 percent
correlation" with the Taiwan All Share Index.

The contracts will be traded via SIMEX's open outcry system.
SIMEX said the contracts would provide investors interested in
the Taiwan bourse "excellent trading and hedging opportunities."

It would also cater to international investors currently
unable to access the bourse.

The Taiwan stock market is the fourth largest in Asia in terms
of capitalization and is known for its volatility and liquidity.