Shares in Tai­wan close in con­sol­i­da­tion

The China Post - - TAIWAN BUSINESS -

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.

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