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