Tai­wan shares end above 9,900 points

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed above the 9,900-point mark Fri­day on ex­panded turnover as in­vestors rushed to pick up large-cap elec­tron­ics stocks fol­low­ing a re­bound staged by the tech-heavy Nas­daq overnight, deal­ers said.

Buy­ing fo­cused on the semi­con­duc­tor sec­tor, and Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the most heav­ily weighted stock in the lo­cal mar­ket, steamed ahead to lift up the en­tire elec­tron­ics sec­tor through­out the ses­sion, they said.

The fi­nan­cial sec­tor slowed down af­ter a strong ses­sion a day ear­lier but still rose above its pre­vi­ous closing level amid op­ti­mism over its earn­ings prospects, deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 115.79 points, or 1.18 per­cent, at 9,913.28, af­ter mov­ing be­tween 9,839.71 and 9,961.31, on turnover of NT$164.65 bil­lion (US$5.31 bil­lion).

The mar­ket opened up 0.44 per­cent as in­ter­est ro­tated to the bell­wether elec­tron­ics sec­tor, led by TSMC.

Buy­ing re­mained strong in early morn­ing trad­ing to push the in­dex above 9,900 points, only for sell­ing to set in, send­ing the in­dex be­low the thresh­old be­fore noon, deal­ers said.

In­ter­est in high- tech shares picked up again in the af­ter­noon, lift­ing trad­ing vol­ume and help­ing the in­dex vault back above the 9,900-point mark at the end of the ses­sion, they said.

Fri­day’s turnover was the high­est for a sin­gle ses­sion since Feb. 9, 2012 and con­tin­ued the mo­men­tum of the pre­vi­ous day when turnover was NT$144.53 bil­lion, the sec­ond high­est daily to­tal this year.

“Judg­ing from the swelling turnover, I think that mar­ket sen­ti­ment has im­proved, prompt­ing many in­vestors to chase share prices and push the in­dex higher to­day,” KGI Se­cu­ri­ties an­a­lyst Phil Chu said.

“Af­ter scram­bling to pick up fi­nan­cial stocks yes­ter­day, in­vestors shifted their at­ten­tion to large-cap stocks to­day. Such ro­ta­tional buy­ing in a mar­ket awash in liq­uid­ity served as the driver of the lat­est up­turn,” Chu said.

The semi­con­duc­tor subindex closed up 2.76 per­cent, and the elec­tron­ics sub- in­dex ended up 1.65 per­cent af­ter TSMC gained 3.74 per­cent to close at NT$152.50, with 122.73 mil­lion shares chang­ing hands.

TSMC’s share price had been in con­sol­i­da­tion mode for some time due to its lower-than-ex­pected sales fore­cast for the sec­ond quar­ter, Chu said.

“But af­ter the sec­ond quar­ter, the chip gi­ant is ex­pected to make a come­back af­ter in­ven­tory ad­just­ments come to an end. To­day’s buy­ing sim­ply re­flected such op­ti­mism.”

Chu cau­tioned, how­ever, that TSMC shares could en­counter tech­ni­cal re­sis­tance as the stock moves closer to NT$155 in the near term.

Among other gain­ing high-tech stocks, in­te­grated cir­cuit designer Me­di­aTek Inc. ( ) rose 3.97 per­cent to end at NT$419.00, and IC pack­ag­ing and testing ser­vices provider Ad­vanced Semi­con­duc­tor En­gi­neer­ing Inc. (ASE) added 2.70 per­cent to close at NT$45.70.

Buck­ing the up­turn on the broader mar­ket, smart­phone cam­era lens maker Lar­gan Pre­ci­sion Co. ( ), the most ex­pen­sive stock in the lo­cal mar­ket, fell 0.95 per­cent to close at NT$3,115.00 af­ter the stock hit a new high a day ear­lier.

Also, Her­mes Mi­cro­vi­sion Inc. ( ), a semi­con­duc­tor in­spec­tion tool and equip­ment sup­plier, fell 1.39 per­cent to close at NT$2,130.00. It re­mained the sec­ond most ex­pen­sive stock in Tai­wan.

In the fi­nan­cial sec­tor, which ended up 0.36 per­cent af­ter a 4.65 per­cent surge a day ear­lier, CTBC Fi­nan­cial Hold­ing Co. ( ) rose 0.83 per­cent to close at NT$24.20, and Fubon Fi­nan­cial Hold­ing Co. ( ) fell 0.81 per­cent to end at NT$61.20.

“Ma­jor fi­nan­cial hold­ing com­pa­nies are fun­da­men­tally healthy. I ex­pect that the sec­tor will con­tinue to move higher by at­tract­ing in­sti­tu­tional in­ter­est, fur­ther boost­ing the mar­ket,” Chu said.

CNA

A woman looks at a mon­i­tor in a stock bro­ker­age in Taipei, yes­ter­day. Shares in Tai­wan closed above the 9,900-point mark yes­ter­day.

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