Shares close be­low 9,600 points on TWSE

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan con­tin­ued their down­turn to close be­low the 9,600- point mark as the bell­wether elec­tron­ics sec­tor re­mained weak amid lin­ger­ing con­cerns over slug­gish sales this quar­ter, deal­ers said.

Sell­ing also spread to the old econ­omy sec­tor as in­vestors locked in gains made by industrial stocks a ses­sion ear­lier, in­clud­ing com­pa­nies in the food and petro­chem­i­cal sec­tors, they said.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 57.74 points, or 0.6 per­cent, at 9,556.52, af­ter mov­ing be­tween 9,550.44 and 9,645.48, on turnover of NT$100.93 bil­lion (US$3.28 bil­lion).

The mar­ket opened up 7.06 points and soon rose to the day’s high on a mild tech­ni­cal re­bound, but sell­ing pres­sure tar­get­ing the high- tech sec­tor quickly set in amid fears that the sec­tor will re­port dis­ap­point­ing sales data for May, deal­ers said.

“The lo­cal stock mar­ket has been in the dol­drums the past few ses­sions, and mar­ket sen­ti­ment has turned more cau­tious, with many in­vestors even grow­ing impatient,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-chen said.

“In­vestors pre­ferred to cut their hold­ings for the time be­ing to steer clear of any pos­si­ble neg­a­tive leads emerg­ing from high-tech firms’ May sales re­ports,” Chang said.

Listed com­pa­nies are re­quired to re­port their May sales by June10.

Fall­ing Large-cap Elec­tron­ics Stocks

Among the fall­ing large-cap elec­tron­ics stocks, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the most heav­ily weighted stock in the lo­cal mar­ket, fell 0.69 per­cent to close at NT$143.00.

Hon Hai

Pre­ci­sion In­dus­try Co. ( ) , the world’s largest con­tract elec­tron­ics maker, lost 0.82 per­cent to end at NT$ 97.00.

Smart­phone ven­dor HTC Corp. ( ) fell 5.79 per­cent to close at NT$92.80, the low­est level since the stock was pub­licly listed in March 2002, be­cause in­vestors lacked con­fi­dence in the com­pany’s out­look.

“I would guess that the sell­ing in the elec­tron­ics sec­tor largely came from for­eign in­vestors,” Chang said.

Ac­cord­ing to the TWSE, for­eign in­sti­tu­tional in­vestors sold a net NT$ 3.06 bil­lion in lo­cal shares on the main board Wed­nes­day.

Buck­ing the down­turn were se­lect Tai­wanese sup­pli­ers to Ap­ple Inc., such as smart­phone cam­era lens maker Lar­gan Pre­ci­sion Co. ( ) and metal cas­ing pro­ducer Catcher Tech­nol­ogy Co. ( ), which trended higher on hopes that the next gen­er­a­tion iPhone will boost ship­ments, deal­ers said.

Lar­gan rose 0.44 per­cent to close at NT$3,455.00 to re­main the most ex­pen­sive stock in Tai­wan, and Catcher gained 1.42 per­cent to end at NT$356.00.

Old Econ­omy Stocks

Among the de­clin­ing old econ­omy stocks, For­mosa Plas­tics Corp. ( ) fell 1.06 per­cent to close at NT$74.90, and food maker Uni-Pres­i­dent En­ter­prises Corp. ( ) lost 1.28 per­cent to end at NT$54.10.

In the fi­nan­cial sec­tor, which has been a pil­lar of strength in re­cent weeks, Fubon Fi­nan­cial Hold­ing Co. ( ) closed down 0.95 per­cent at NT$62.50, and the sec­tor as a whole was down 0.18 per­cent.

“More losses are pos­si­ble in Tai­wan’s stock mar­ket as many in­vestors are wary of fu­ture fluc­tu­a­tions. I think that the near­est tech­ni­cal sup­port will prob­a­bly be seen at around 9,500 points,” Chang said.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.