Lo­cal shares boosted on large-cap stocks re­bound

The China Post - - TAIWAN BUSINESS -

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.

Elec­tron­ics Sec­tor

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.

Other Sec­tors

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.

CNA

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.

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