Shares fall to 9,259.48 amid Greece worry

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan moved lower Mon­day as in­vestors took cues from the losses on Wall Street last Fri­day, which were caused by re­newed con­cerns over the debt prob­lems in Greece, deal­ers said.

Turnover on the lo­cal mar­ket fell be­low the NT$80 bil­lion (US$2.58 bil­lion) mark as many in­vestors stayed on the side­lines ahead of a U.S. Fed­eral Re­serve pol­i­cy­mak­ing meet­ing that is ex­pected to look at in­ter­est rates when it be­gins Tues­day, deal­ers said.

HTC Staged Tech­ni­cal Re­bound

While the broader mar­ket here re­mained slow, smart­phone ven­dor HTC Corp. ( ) staged a strong tech­ni­cal re­bound on mar­ket hopes of an ac­qui­si­tion by per­sonal com­puter brand Asustek Com­puter Inc. ( ), deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 42.45 points, or 0.45 per­cent, at 9,259.48, af­ter mov­ing be­tween 9,252.34 and 9,324.94. Turnover to­taled NT$74.57 bil­lion dur­ing the ses­sion.

The mar­ket opened 0.04 points lower and fell fur­ther on fol­low-through sell­ing from the pre­vi­ous ses­sion, be­fore bar­gain hunt­ing emerged and helped push the in­dex back into pos­i­tive ter­ri­tory at one point, deal­ers said.

How­ever, af­ter the in­dex briefly breached 9,300 points, in­vestors shifted to the sell side again, with large cap stocks com­ing un­der pres­sure on fears of volatil­ity in the global fi­nan­cial mar­kets due to the un­re­solved debt sit­u­a­tion in Greece, deal­ers said.

Re­gional Mar­kets Fell

“Look at other re­gional mar­kets like Hong Kong and Shang­hai, which also fell to­day. I think mar­ket sen­ti­ment in the re­gion has been un­der­mined by the debt prob­lem in Greece,” Hua Nan Se­cu­ri­ties an­a­lyst Kevin Su said. “Tai­wan was no ex­cep­tion.”

Last Thurs­day, the In­ter­na­tional Mon­e­tary Fund re­called its ne­go­tia­tors on the Greece debt res­cue pro­gram, giv­ing rise to fears that the Euro­pean coun­try would de­fault on its mas­sive debts.

“The global mar­kets have also been haunted by a pos­si­ble in­ter­est rate hike by the U.S Fed,” Su said. “Many in­vestors pre­ferred to stay away from the trad­ing floor un­til af­ter the Fed meet­ing,” Su said, re­fer­ring to the thin trad­ing vol­ume on Mon­day.

Since for­eign in­sti­tu­tional in­vestors have a large num­ber of net short-po­si­tion con­tracts in the fu­tures mar­ket, large cap stocks were the ma­jor vic­tims of Mon­day’s down­turn in the spot mar­ket, Su said.

Among the elec­tron­ics heavy­weights, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( ) fell 1.04 per­cent to close at NT$143.00, and in­te­grated cir­cuit designer Me­di­aTek Inc. ( ) lost 1.68 per­cent to end at NT$409.00.

Other Sec­tors

In the non-high tech sec­tor, Nan Ya Plas­tics Corp. ( ) lost 0.84 per­cent to close at NT$71.10, For­mosa Chem­i­cals & Fi­bre Corp. ( ) fell 1.50 to end at NT$72.30, and Mega Fi­nan­cial Hold­ing Co. ( ) closed down 0.72 per­cent at NT$27.60.

Buck­ing the broader mar­ket trend, HTC rose by the max­i­mum daily 10 per­cent to fin­ish at NT$83.60 af­ter Asustek raised the pos­si­bil­ity of ac­quir­ing the smart­phone ven­dor.

“But I think the HTC gains were just tech­ni­cal in na­ture af­ter the re­cent sell­off,” Su said. “I’m still wor­ried about the com­pany’s earn­ings out­look.”

HTC has pro­jected a loss per share of al­most NT$10 for the April to May pe­riod.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.