Lo­cal shares backpedal over con­cerns from the Greek debt co­nun­drum

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan pulled back Fri­day from the gains posted a ses­sion ear­lier as in­vestors were dis­cour­aged by a slid­ing Wall Street trend overnight amid con­cerns over the debt prob­lems in Greece, deal­ers said.

The bell­wether elec­tron­ics sec­tor en­coun­tered selling through­out the ses­sion, led by high-priced stocks, such as the smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ), while se­lect Ap­ple Inc.’s sup­pli­ers and semi­con­duc­tor stocks ap­peared re­silient to lend sup­port to the sec­tor, they said.

Bar­gain hun­ters fo­cused on cer­tain non-high tech stocks, in par­tic­u­lar in the food and fi­nan­cial sec­tors, by tak­ing ad­van­tage of these stocks’ rel­a­tively low val­u­a­tions af­ter re­cent con­sol­i­da­tion, they added.

The weighted in­dex on the Tai­wan Stock Ex­change closed down 13.77 points, or 0.14 per­cent, at 9,462.57, af­ter mov­ing be­tween 9,442.94 and 9,487.29, on turnover of NT$83.59 bil­lion (US$2.71 bil­lion).

The mar­ket opened up 1.54 points and rose to the day’s high on fol­low-through buy­ing from Thurs­day, but many in­vestors ap­peared re­luc­tant to chase prices, a move which dragged down the in­dex with selling fo­cus­ing on elec­tron­ics stocks, deal­ers said. The in­dex moved be­low the pre­vi­ous close for the rest of the ses­sion they said.

“The debt sit­u­a­tion in the eu­ro­zone still weighed on in­vestor sen­ti­ment in the global fi­nan­cial mar­kets,” Ta Ching Se­cu­ri­ties an­a­lyst Andy Hsu, re­fer­ring to the fur­ther losses on Wall Street overnight and a re­treat suf­fered by sev­eral ma­jor mar­kets in the re­gion.

Greece and its cred­i­tors failed to reach an agree­ment overnight af­ter its re­form pro­posal had been re­jected ear­lier this week. In­vestors in the global mar­ket are watch­ing closely how another meet­ing on the Greek loans sched­uled for Satur­day will pro­ceed ahead of the June 30 debt pay­ment dead­line with wor­ries over a de­fault loom­ing.

“So, Tai­wan was no ex­cep­tion as in­vestors here locked in the gains they posted a ses­sion ear­lier,” Hsu said.

Hsu said that as Lar­gan and other high- priced stocks trended lower, it was not sur­pris­ing that the lo­cal high-tech sec­tor weak­ened, af­fect­ing the broader mar­ket. Lar­gan, the most ex­pen­sive stock in the lo­cal mar­ket, fell 1.51 per­cent to close at NT$3,585.00 af­ter the stock hit a fresh clos­ing high of NT$3,640.00 Thurs­day.

“The losses in­curred by Lar­gan were sim­ply tech­ni­cal in na­ture. Many in­vestors have high hopes that the com­pany will ben­e­fit from an in­crease in or­ders to be placed by Ap­ple,” Hsu said. The mar­ket has been ex­pect­ing that Lar­gan will post NT$ 160- 170 in earn­ings per share for 2015, up from NT$144.85 recorded in 2014.

Among other fall­ing elec­tron­ics stocks, in­te­grated cir­cuit de­signer Me­di­aTek Inc. ( ) lost 1.73 per­cent to end at NT$425.00, and Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( ), the most weighted stock in the lo­cal mar­ket, closed down 0.34 per­cent at NT$146.00.

Buck­ing the down­turn of the elec­tron­ics sec­tor, Hon Hai Pre­ci­sion In­dus­try Co. ( ), an as­sem­bler of iPhones and iPads, rose 0.20 per­cent to close at NT$99.20, and IC pack­ag­ing and test­ing ser­vices provider Ad­vanced Semi­con­duc­tor En­gi­neer­ing Inc. ( ) rose 0.81 per­cent to end at NT$43.30.

In the non-high tech sec­tor, Stan­dard Foods Corp. ( ) rose 2.80 per­cent to close at NT$88.00, and textile maker Far Eastern New Cen­tury Corp. ( ) added 0.31 per­cent to end at NT$32.75. Cathay Fi­nan­cial Hold­ing Co. (

) closed up 0.92 per­cent to NT$54.90.

“The lo­cal main board is faced with stiff tech­ni­cal re­sis­tance ahead of 9,500 points. I do not think the hur­dles will be easily jumped over soon,” Hsu said.

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