Lo­cal shares boosted by Wall Street gains

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed higher Fri­day as in­vestors here were en­cour­aged by the gains posted on Wall Street overnight and picked up bar­gains af­ter the mar­ket had lost ground the pre­vi­ous two ses­sions, deal­ers said.

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the world’s largest con­tract chip­maker, staged a tech­ni­cal re­bound fol­low­ing a 1.03 per­cent rise in its Amer­i­can de­posi­tary re­ceipts ( ADRs) in the U.S. mar­ket overnight, help­ing drive the broader mar­ket higher, deal­ers said.

The fi­nan­cial sec­tor ex­tended gains from a ses­sion ear­lier to also lend sup­port to the mar­ket af­ter life in­sur­ance com­pa­nies re­ported an im­prove­ment in their bot­tom lines for the first quar­ter, they said.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 49.66 points, or 0.51 per­cent, at 9,617.70, af­ter mov­ing be­tween 9,582.84 and 9,648.34, on turnover of NT$91.18 bil­lion (US$2.92 bil­lion).

The mar­ket opened up 0.65 per­cent in re­ac­tion to Wall Street’s gains overnight, and buy­ing ac­cel­er­ated with TSMC and fi­nan­cial stocks steam­ing ahead, push­ing the in­dex to the day’s high, deal­ers said.

With the in­dex mov­ing closer to the near­est tech­ni­cal re­sis­tance at around 9,700 points, how­ever, some in­vestors start­ing sell­ing their hold­ings to lock in gains built ear­lier in the ses­sion, cap­ping the in­dex’s rise at the close, they said.

TSMC Sta­bi­lizes Broader Mar­ket

“TSMC played a role in sta­bi­liz­ing the broader mar­ket, which suf­fered losses the past few days,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-cheng said.

“But the gains posted by TSMC failed to boost turnover sig­nif­i­cantly. It was not easy for the lo­cal mar­ket to clear the tech­ni­cal hur­dles above the 9,700- point mark with daily trad­ing vol­ume re­main­ing un­der NT$100 bil­lion,” Chang said.

TSMC, t he most heav­ily weighted stock on the mar­ket, rose 2.80 per­cent to close at NT$ 147.00, with 33.82 mil­lion shares chang­ing hands, af­ter U. S. chip maker In­tel Corp.’ s bid to ac­quire smaller ri­val Al­tera Corp. broke down.

The ter­mi­na­tion of the takeover talks eased mar­ket con­cerns that Al­tera would shift its or­ders to In­tel from TSMC once the ac­qui­si­tion was com­pleted, prompt­ing in­vestors here to buy the Tai­wanese chip maker’s shares Fri­day, deal­ers said.

“The fail­ure of the lo­cal bourse to see its turnover ex­pand sig­nif­i­cantly was also be­cause of the limited gains posted by other high-tech heavy­weights,” Chang said.

“In­vestors have been closely watch­ing the on­go­ing earn­ings sea­son on Wall Street and were re­luc­tant to chase prices for the mo­ment.”

Among the gain­ing elec­tron­ics stocks, Hon Hai Pre­ci­sion In­dus­try Co. ( ), which as­sem­bles iPhones and iPads, rose 0.11 per­cent to close at NT$93.10, and Lar­gan Pre­ci­sion Co. (

), which sup­plies smart­phone cam­era lenses to Ap­ple Inc., added 0.94 per­cent to end at NT$2,695.00.

Other Sec­tors

The fi­nan­cial sec­tor closed up 0.56 per­cent af­ter most fi­nan­cial hold­ing com­pa­nies that own large life in­sur­ance units posted higher earn­ings in the first quar­ter.

Among them, Shin Kong Fi­nan­cial Hold­ing Co. ( ) gained 2.66 per­cent to close at NT$9.25 af­ter post­ing a 140 per­cent in­crease in net profit for the first quar­ter.

Cathay Fi­nan­cial Hold­ing Co. ( ) rose 0.80 per­cent to end at NT$ 50.60 af­ter record­ing a more than 46 per­cent in­crease in net in­come over the same pe­riod.

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