TAIEX shares end lower amid cau­tion on May sales data

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed lower Tues­day af­ter mov­ing in a nar­row range as many in­vestors re­mained cau­tious be­fore high- tech heavy­weights re­leased their May sales data, deal­ers said.

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ) stayed be­low the pre­vi­ous closing level through­out the trad­ing ses­sion amid con­cerns that a deal for In­tel Corp. to ac­quire smaller ri­val Al­tera Corp. will lead Al­tera to shift its or­ders with TSMC to In­tel, the deal­ers said.

While the bell­wether elec­tron­ics sec­tor re­mained slow, bar­gain hun­ters set their sights on se­lect old econ­omy stocks, in par­tic­u­lar in the food and petro­chem­i­cal sec­tors, lend­ing some sup­port to the broader mar­ket, the deal­ers added.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 11.43 points, or 0.11 per­cent, at 9,614.26, af­ter mov­ing be­tween 9,584.56 and 9,657.02, on turnover of NT$98.82 bil­lion ( US$ 3.20 bil­lion).

The mar­ket opened down 9.17 points and fell to the day’s low on fol­low-through sell­ing from a ses­sion ear­lier, but with the in­dex briefly fall- ing 9,600 points, the bourse staged a mild re­bound be­fore sell­ing reemerged in the lat­ter part of the ses­sion to push down share prices into the red by the close, the deal­ers said.

“The lo­cal mar­ket re­mained in con­sol­i­da­tion mode as many in­vestors who wanted to fig­ure out the im­pact from the wider daily stock price fluc­tu­a­tions took to the side­lines,” an­a­lyst Vickie Hsieh said. Since Mon­day, the max­i­mum daily up­ward and down­ward lim­its have been raised to 10 per­cent from 7 per­cent.

“The cur­rent May sales re­port­ing pe­riod (end­ing June 10) has made in­vestors more cau­tious amid fears that the high tech sec­tor will re­port poor rev­enue re­ports dur­ing the cur­rent slow sea­son,” Hsieh said.

Elec­tron­ics Sub- in­dex

The elec­tron­ics sub- in­dex closed down 0.12 per­cent. TSMC, the most weighted stock in the lo­cal mar­ket, fell 0.69 per­cent to end at NT$144.00 with 33.41 mil­lion shares chang­ing hands. In ad­di­tion to the In­tel- Al­tera deal, TSMC shares were im­pacted by wor­ries over its con­sol­i­dated sales for the cur­rent quar­ter and even for the third quar­ter. In­te­grated cir­cuit designer Me­di­aTek Inc. ( ) closed un­changed at NT$ 410.00, while smart­phone ven­dor HTC Corp. (

) staged a tech­ni­cal re­bound from Mon­day’s losses, up 0.51 per­cent to end at NT$98.50, af­ter the com­pany said it will con­sider a share buy­back pro­gram to sup­port its share price.

COM­PU­TEX Boosts De­mand

How­ever, down­ward pres­sure in the elec­tron­ics sec­tor seemed limited as in­vestors had high hopes that the on­go­ing COM­PU­TEX Taipei, the sec­ond-largest com­puter show in the world, will un­veil in­no­va­tions to boost de­mand, Hsieh said.

“As the high tech sec­tor ap­peared slug­gish, in­vestors sought tar­gets in the old econ­omy sec­tor by tak­ing ad­van­tage of their rel­a­tively low val­u­a­tions,” Hsieh said.

Among the gain­ing tra­di­tional industrial stocks, For­mosa Plas­tics Corp. ( ) gained 1.34 per­cent to close at NT$ 73.10 and Nan Ya Plas­tics Corp. ( ) added 1.34 per­cent to end at NT$ 75.70, while food maker Uni- Pres­i­dent En­ter­prises Corp. rose 1.67 per­cent to 54.80 on hopes of higher bev­er­age sales dur­ing the sum­mer pe­riod.

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