Local shares boosted on large-cap stocks rebound
Shares in Taiwan ended more than 1 percent higher Wednesday after large-cap stocks across the board staged a rebound from a plunge seen a session earlier, dealers said.
Contract chip- maker Taiwan Semiconductor Manufacturing Co. (TSMC, ) led the initial gains on the broader market amid optimism toward the company’s outlook, and interest spread to select high-tech stocks, in particular in the Apple Inc. supply chain, the dealers said.
The financial sector got a boost from heavyweight stocks such as Cathay Financial Holding Co. (
), which reported impressive earnings for May, while petrochemical stocks moved higher after international crude oil prices bounced back overnight, they added.
NT$98.04 Bil. Turnover
The weighted index on the Taiwan Stock Exchange closed up 106.63 points, or 1.16 percent, at 9,298.50, after moving between 9,246.66 and 9,334.50, on turnover of NT$98.04 billion (US$3.15 billion).
The market opened up 0.83 percent on a technical rebound from a 1.88 percent dive seen a session earlier, and momentum accelerated to push the index to the day’s high, with buying seen across the board, the dealers said. But with the index breaching 9,300 points, some investors locked in their earlier gains to cap the closing level below that level, they said.
“Despite the gains, turnover failed to expand significantly, indicating that not many investors felt comfortable chasing prices for now after the market took a beating yesterday,” Mega International Investment Services analyst Alex Huang said.
“As the local market failed to end above the 220-day moving average around 9,321 points today, the latest gains were simply technical in nature. The market needs some time to digest selling before it will see another takeoff,” Huang said.
Buying was initially ignited by the bellwether electronics sector, led by TSMC, the most heavily weighted stock in the local market, after company Chairman Morris Chang ( ) said a day earlier that the chip-maker is expected to post a more-than 10 percent increase in sales and earnings in 2015.
While TSMC’s momentum faded to some extent, select Apple concept stocks, such as Hon Hai Precision Industry Co. ( ) and Catcher Technology Co. ( ), played catch-up, lending support to the broader market.
TSMC closed up 0.36 percent at NT$139.50, off an early high of NT$141.50. Hon Hai, an iPhone and iPad assembler, gained 2.58 percent to end at NT$ 95.60, and metal casing maker Catcher added 4.74 percent to close at NT$364.50.
Smartphone vendor HTC Corp. ( ) rose 1.33 percent to end at NT$76.30 after an almost 19 percent fall in the previous two sessions due to an earnings warning released over the weekend.
In the financial sector, Cathay Financial rose 1.74 percent to end at NT$52.70 and Mega Financial Holding Co. ( ) gained 2.59 percent to close at NT$27.70.
Among the gaining old economy stocks, Formosa Petrochemical Corp. ( ) rose 1.04 percent to end at NT$77.90 and Nan Ya Plastics Corp. ( ) added 1.12 percent to close at NT$72.50.
“Investors should keep alert over the progress of the talks between Greece and its creditors on how to solve the European country’s debt problems, which could move the global financial markets,” Huang said.
An investor watches screens displaying stock movements at a brokerage in Taipei, yesterday. TAIEX shares closed up at 106.63 points, a rise of 1.16 percent, to end the day’s trade at 9298.5.