Tai­wan shares ex­tend gains on op­ti­mism over Greece

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan ex­tended their mo­men­tum from a ses­sion ear­lier and moved higher Tues­day as in­vestors em­braced high hopes that Greece and its cred­i­tors will ham­mer out a pack­age to solve the Euro­pean coun­try’s debt prob­lems, deal­ers said.

The bell­wether elec­tron­ics sec­tor, led by Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC,

) and smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. (

), trended lower, along with bar­gain-hunt­ing that put the fi­nan­cial sec­tor un­der the spotlight, the deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change closed up 49.37 points, or 0.52 per­cent, at 9,391.14, af­ter mov­ing be­tween 9,375.78 and 9,438.39, on turnover of NT$99.73 bil­lion ( US$ 3.23 bil­lion).

The mar­ket opened up 0.36 per­cent in a knee-jerk re­ac­tion to a higher Wall Street overnight amid re­duced con­cerns over the debt sit­u­a­tion in the eu­ro­zone af­ter Greece of­fered an eco­nomic re­form pro­posal to its cred­i­tors that seemed to be ac­cept­able, the deal­ers said.

Buy­ing Fo­cus­ing on

High-tech Stocks

Mo­men­tum in the lo­cal eq­uity mar­ket ac­cel­er­ated, with buy­ing fo­cus­ing on high-tech and fi­nan­cial stocks, but with the in­dex breach­ing the 9,400 point mark, some in­vestors locked in their ear­lier gains to cap the up­turn at the close, they said.

“Buy­ing on Wall Street and in Europe overnight sig­naled op­ti­mism to­ward Greece’s debt prob­lems. It seemed that many in­vestors were up­beat that Greece will break the dead­lock in its ne­go­ti­a­tions,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing Co. an­a­lyst Chang Chih- cheng said.

“Tai­wan also moved in line with the fi­nan­cial mar­kets Tues­day, ex­tend­ing its mo­men­tum from a ses­sion ear­lier, while it faced tech­ni­cal re­sis­tance at around 9,400 points,” Chang said, re­fer­ring to the high tech­ni­cal hur­dles at the 20-day mov­ing av­er­age of 9,416 points.

“I think that the lo­cal mar­ket needs higher turnover to help it con­quer the tech­ni­cal dif­fi­cul­ties,” he said.

Tues­day’s buy­ing was con­cen­trated on high-tech and fi­nan­cial stocks, Chang said. The elec­tron­ics sec­tor closed up 0.66 per­cent and the fi­nan­cial sub-in­dex ended up 1.01 per­cent.

Elec­tron­ics Sec­tor Led

Matket Higher

“Thanks to high- tech heavy­weights such as TSMC and Lar­gan, the bell­wether elec­tron­ics sec­tor led the broader mar­ket to move higher,” Chang said. The an­a­lyst said that TSMC ben­e­fited from its rel­a­tively low val­u­a­tion af­ter re­cent con­sol­i­da­tion. Lar­gan got a boost from ex­pec­ta­tions of large or­ders to be placed by Ap­ple Inc.

TSMC, the most heav­ily weighted stock in the lo­cal mar­ket, closed up 1.76 per­cent to close at NT$144.50, with 37.26 mil­lion shares chang­ing hands, while Lar­gan, dubbed one of the im­por­tant Ap­ple con­cept stocks in Tai­wan, gained 3.04 per­cent to end at

NT$3,555.00.

Other Sec­tor

Among the gain­ing fi­nan­cial stocks, Fubon Fi­nan­cial Hold­ing Co. ( ) rose 1.89 per­cent to close at NT$ 64.80 af­ter the com­pany an­nounced that its sub­sidiary, Fubon Life In­sur­ance ( ) , will buy a 48- per­cent stake in South Korea’s Hyundai Life.

Cathay Fi­nan­cial Hold­ing Co. rose 2.64 per­cent to close at NT$54.40, while CTBC Fi­nan­cial Hold­ing Co. ( ) ended un­changed at NT$24.35.

“If mar­ket sen­ti­ment to­ward Greece’s debt sit­u­a­tion con­tin­ues to im­prove, the lo­cal mar­ket is likely to fol­low in the foot­steps of other fi­nan­cial mar­kets to move in an up­trend, but in a grad­ual man­ner,” Chang said.

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