Shares in Taiwan close in consolidation
The local bourse closed in consolidation mode Tuesday as investors became reluctant to chase prices even as the index broke the 9,300 point mark, eventually eroding gains by the end of the session and pushing the index back down, dealers said.
The bellwether electronics sector pulled back as investors locked in gains they built a session earlier with largecap stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC,
), while select old economy stocks attracted bargain hunting to outperform the broader market, they said.
The weighted index on the Taiwan Stock Exchange ended down 17.85 points, or 0.19 percent, at 9,268.43 , after moving between 9,262.70 and 9,338.06, on turnover of NT$71.24 billion (US$2.25 billion).
The market opened up 0.14 percent and rose to the day’s high on followthrough buying from a session earlier and breached 9,300 points, but some investors shifted to the sell side to push down the bourse to the red at the close, dealers said.
“After gaining in the previous few sessions, the local bourse took a pause today,” Mega International Investment Services Corp. analyst Alex Huang said.
Before Tuesday, the Taipei equity market gained about 1.40 percent in the previous three sessions and had added 5.19 percent since Dec. 17.
Heavy Resistance at 9,350
“There is heavy technical resistance at around 9,350 points. So after the index breached 9,300 points at one point, it was no surprise that selling set in as many investors preferred to lock in their gains for the moment,” Huang said.