TAIEX shares end up, led by large-cap stocks

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed higher Thurs­day as large-cap stocks across the board staged a tech­ni­cal re­bound, with in­vestors ig­nor­ing the losses on Wall Street overnight, deal­ers said.

Mar­ket sen­ti­ment im­proved to some ex­tent af­ter for­eign in­sti­tu­tional in­vestors raised their long po­si­tion con­tracts in the fu­tures mar­ket in the pre­vi­ous ses­sion, deal­ers said.

Shares of smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ) ended at a new high amid op­ti­mism to­ward the com­pany’s earn­ings in the sec­ond half of this year, when Ap­ple Inc.’s or­ders are ex­pected to stream in for pro­duc­tion of the next gen­er­a­tion iPhone, deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 79.03 points, or 0.84 per­cent, at 9,476.34, af­ter mov­ing be­tween 9,415.78 and 9,500.57. Turnover to­taled NT$101.29 bil­lion (US$3.28 bil­lion) dur­ing the ses­sion.

The mar­ket opened up 0.20 per­cent, with in­vestors ig­nor­ing a 178-point drop on the Dow Jones In­dus­trial Av­er­age overnight, and gained mo­men­tum on strong gains by mar­ket heavy­weights in both the high-tech and old econ­omy sec­tors, deal­ers said.

But as the in­dex briefly breach­ing the 9,500 point mark early in the ses­sion, some in­vestors rushed to lock in their gains, which capped the up­turn for the rest of the ses­sion, deal­ers said.

“The move by for­eign in­sti­tu­tional in­vestors to raise their long po­si­tion con­tracts in the fu­tures mar­ket helped re­store in­vestors’ con­fi­dence in the spot mar­ket. That’s why buy­ing emerged, push­ing share prices higher, although the in­dex closed shy of 9,500 points,” Taishin Se­cu­ri­ties In­vest­ment Ad­vi­sory an­a­lyst Tony Huang said.

For­eign In­vestors on the Buy Side

For­eign in­sti­tu­tional in­vestors raised their long po­si­tion con­tracts in the fu­tures mar­ket Wed­nes­day to record a net of more than 800 long po­si­tion con­tracts. It was the first time for for­eign in­vestors to register a net in long po­si­tion con­tracts since early May.

“Fol­low­ing the in­crease in long po­si­tion con­tracts held by for­eign in­vestors in the fu­tures mar­ket, for­eign in­sti­tu­tional in­vestors stood on the buy side in the spot mar­ket to­day, pick­ing up large-cap stocks through­out the ses­sion,” Huang said.

For­eign in­sti­tu­tional in­vestors bought a net NT$10.37 bil­lion worth of shares on the lo­cal main board Thurs­day, ac­cord­ing to the TWSE.

Among the gain­ing large caps, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( ), the most heav­ily weighted stock on the lo­cal mar­ket, rose 1.03 per­cent to close at NT$146.50, while Hon Hai Pre­ci­sion In­dus­try Co. ( ) gained 1.43 per­cent to end at NT$99.00 af­ter its chair­man Terry Guo ( ) forecast a 10 per­cent an­nual growth in the com­pany’s sales for 2015.

Lar­gan rose 1.68 per­cent to end at NT$3,640.00, a new clos­ing high in the stock’s history.

“Lar­gan’s gains also boosted mar­ket sen­ti­ment as many in­vestors see the stock as a barom­e­ter of the broader mar­ket,” Huang said.

Old Econ­omy Sec­tor

In the old econ­omy sec­tor, food com­pany Uni-Pres­i­dent En­ter­prises Corp. ( ) rose 2.66 per­cent to end at NT$54.00, and textile man­u­fac­turer Far Eastern New Cen­tury Corp. ( ) gained 1.40 per­cent to close at NT$32.65.

“I think the mar­ket needs some time to di­gest the pres­sure ahead of the 9,500-point mark de­spite to­day’s up­turn,” Huang said.

“In­vestors should keep a close eye on the debt prob­lems in Greece, which could move the global mar­kets.”

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