Shares fail to end up at close de­spite late ses­sion buy­ing; close at NT$8,510.86

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan failed to close higher Tues­day af­ter a 1.62 per­cent plunge seen a ses­sion ear­lier, although some bar­gain hunt­ing emerged in the late ses­sion with se­lect large-cap stocks in fo­cus, deal­ers said.

The late ses­sion buy­ing largely lifted heavy­weights in the fi­nan­cial sec­tor, such as Fubon Fi­nan­cial Hold­ing Co. ( ) and Cathay Fi­nan­cial Hold­ing Co. ( ), but the bell­wether elec­tron­ics sec­tor as a whole re­mained in the dol­drums amid lin­ger­ing con­cerns over weak­en­ing global de­mand, they said.

Se­lect high-tech stocks, such as Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ) and Hon Hai Pre­ci­sion In­dus­try Co. ( ), ap­peared re­silient, also lend­ing some sup­port to the broader mar­ket, they added.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 13.55 points, or 0.15 per­cent, at 8,510.86, af­ter mov­ing be­tween 8,433.92 and 8,590.30, on turnover of NT$99.65 bil­lion (US$3.14 bil­lion).

Gains Posted by Other Re­gional

Mar­kets

The mar­ket opened up 9.84 points and rose to the day’s high in the wake of the gains posted by other re­gional mar­kets, such as Hong Kong, Shang­hai and Seoul, but with the in­dex mov­ing near 8,600 points, in­vestors shifted to the sell side to send the in­dex into neg­a­tive ter­ri­tory, deal­ers said.

The losses were capped to some ex­tent at the end of the ses­sion af­ter se­lect blue chips at­tracted bar­gain hun­ters to buy, they said.

“Judg­ing from the last- ditch buy­ing, I sus­pect that gov­ern­men­tled funds served as the buy­ers in a bid to pre­vent the in­dex from fall­ing fur­ther,” eq­uity mar­ket an­a­lyst Vickie Hsieh said. “But, the lo­cal mar­ket has be­come much weaker tech­ni­cally af­ter yesterday’s dive, and more volatil­ity is pos­si­ble to come.”

Boosted by the late ses­sion buy­ing, the fi­nan­cial sec­tor closed up 0.97 per­cent with Fubon Fi­nan­cial up 1.78 per­cent to close at NT$57.30, and Cathay Fi­nan­cial 0.99 per­cent higher to end at NT$50.80.

Hsieh said that many high­priced elec­tron­ics stocks re­mained weak Tues­day, which fur­ther hurt in­vestor con­fi­dence in the fu­ture move­ment of the in­dex. The elec­tron­ics sub-in­dex closed down 0.68 per­cent.

Fall­ing High-tech Stocks

Among t he f alling tech stocks, in­te­grated high­cir­cuit de­signer Me­di­aTek Inc. (

) fell 6.35 per­cent to end at NT$ 280.50 af­ter a daily max­i­mum 10 per­cent plunge seen a day ear­lier. The IC de­signer’s share price was badly hurt by its lower- than- ex­pected sales forecast for the third quar­ter. Catcher Tech­nol­ogy Co. ( ), me­tal casing sup­plier to Ap­ple Inc., shed 6.55 per­cent to close at NT$ 314.00, and con­tract notebook com­puter maker Com­pal Elec­tron­ics Inc. (

) lost 2.55 per­cent to end at NT$ 21.05. Her­mes Mi­cro­vi­sion Inc. (

) , a semi­con­duc­tor in­spec­tion tool and equip­ment sup­plier, fell 10 per­cent to close at NT$ 1,280,00 on the lo­cal over­the- counter mar­ket af­ter cut­ting its 2015 sales forecast.

The stock is the sec­ond most ex­pen­sive one in the lo­cal mar­ket only trail­ing Lar­gan Pre­ci­sion Co. ( ) , which rose 1.54 per­cent to end at NT$2,970.00 on the main board.

“I do not ex­pect that the lo­cal mar­ket will make any im­me­di­ate mean­ing­ful break­through. In ad­di­tion to the weaker- than- ex­pected out­look of the high tech sec­tor, fears of in­ter­est rates hikes in the U. S. mar­ket are ex­pected to con­tinue to haunt in­vestors’ con­fi­dence,” Hsieh said.

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