Tai­wan shares end lit­tle changed as ear­lier gains eroded

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed lit­tle changed Thurs­day as the in­dex gave up most of its ear­lier gains, with down­ward pres­sure fo­cus­ing on large-cap stocks in the fi­nan­cial and old econ­omy sec­tors, deal­ers said.

The sil­ver lining for the mar­ket was that the bell­wether elec­tron­ics sec­tor, led by Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC,

), con­tin­ued to move higher, off­set­ting the im­pact from sell­ing in the non-tech sec­tor, the deal­ers said.

Turnover re­mained mod­er­ate as many in­vestors stayed on the side­lines af­ter spot­ting for­eign in­sti­tu­tional in­vestors main­tain­ing a large num­ber of net short-po­si­tion con­tracts in the fu­tures mar­ket, which raised fears of more for­eign in­sti­tu­tional sell­ing in the spot mar­ket, they added.

The weighted in­dex on the Tai- wan Stock Ex­change ended up 3.99 points, or 0.04 per­cent, at 9,302.49, af­ter mov­ing be­tween 9,251.18 and 9,358.48, on turnover of NT$97.36 bil­lion (US$3.15 bil­lion).

The mar­ket opened up 0.43 per­cent in a knee-jerk re­ac­tion to a higher Wall Street and higher Euro­pean mar­kets overnight, and rose to the day’s high amid re­duced con­cerns over the debt prob­lems en­coun­tered by Greece, the deal­ers said.

In­ter­ests in High-tech

Heavy­weights

With the in­dex briefly breaching the near­est tech­ni­cal re­sis­tance level of 9,350 points, in­vestors started tak­ing prof­its, which pushed down the in­dex, but in­ter­est in high-tech heavy­weights re­mained to off­set the down­ward pres­sure, and this helped the broader mar­ket to end above the pre­vi­ous closing level, the deal­ers said.

“With­out elec­tron­ics stocks, in par­tic­u­lar TSMC, the lo­cal eq­uity mar­ket could have suf­fered more sell­ing and could have ended lower to­day,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-cheng said.

TSMC, the most heav­ily weighted stock in the lo­cal mar­ket, rose 2.87 per­cent to close at NT$143.50, with 44.68 mil­lion shares chang­ing hands. “I think that many in­vestors have high hopes that TSMC will achieve its sec­ond-quar­ter sales tar­get (of NT$204 bil­lion-NT$207 bil­lion) with­out any prob­lems.”

In­ter­est in the high-tech sec­tor also spread to other heavy­weights, such as smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. (

), which added 2.60 per­cent to end at NT$3,355.00 on ex­pecta- tions that its sales mo­men­tum will pick up in the sec­ond half of this year due to or­ders from Ap­ple Inc.

Hon Hai Pre­ci­sion In­dus­try Co. ( ), the world’s largest con­tract elec­tron­ics maker, which as­sem­bles iPhones and iPads for Ap­ple, ended up 0.21 per­cent at NT$95.80, re­cov­er­ing from an early low of NT$94.50. The com­pany re­ported a day ear­lier that it posted NT$301.60 bil­lion in con­sol­i­dated sales for May, bet­ter than the mar­ket had pre­vi­ously an­tic­i­pated.

While the elec­tron­ics sub-in­dex ended up 0.48 per­cent, the fi­nan­cial sec­tor closed down 0.31 per­cent as in­vestors took ad­van­tage of the sec­tor’s up­turn seen a ses­sion ear­lier.

Other Sec­tors

CTBC Fi­nan­cial Hold­ing Co. (

) fell 1.25 per­cent to close at NT$ 23.70 and Mega Fi­nan­cial Hold­ing Co. ( ) lost 1.08 per­cent to end at NT$27.40, while Cathay Fi­nan­cial Hold­ing Co. (

) rose 0.19 per­cent to close at NT$52.80.

Among the fall­ing old econ­omy stocks, Tai­wan Ce­ment Corp. (

) shed 1.68 per­cent to close at NT$38.15 and tex­tile maker Far Eastern New Cen­tury Corp. (

) lost 1.84 per­cent to end at NT$31.95.

“The mod­er­ate turnover showed that many in­vestors re­mained re­luc­tant to chase prices, a move that caused the in­dex to fall from the ini­tial gains,” Chang said.

“Fears still haunted mar­ket sen­ti­ment that for­eign in­sti­tu­tional in­vestors will stay on the sell side in the spot mar­ket, as they kept net large short-po­si­tion con­tracts in fu­tures at more than 18,000 Wed­nes­day,” Chang said.

CNA

Acer Inc. ( ) CEO Ja­son Chen ( ) presents Acer’s new­est curved-screen mon­i­tor in Bangkok, yes­ter­day. The new­est curved-screen mon­i­tor is specif­i­cally de­signed for gamers to en­joy a more re­al­is­tic gam­ing ex­pe­ri­ence.

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