Tai­wan shares edge down to 8,442.29, but Lar­gan re­bounds

The China Post - - BUSINESS -

Shares in Tai­wan closed slightly lower on Fri­day af­ter bar­gain hun­ters stepped in to pick up stocks hit hard early in the ses­sion and a day ear­lier, min­i­miz­ing the day’s losses, deal­ers said.

Lar­gan Pre­ci­sion Co. ( ), a smart­phone lens sup­plier to Ap­ple Inc., staged a strong tech­ni­cal re­bound af­ter a 10 per­cent plunge on Thurs­day, and its gains led other “Ap­ple con­cept stocks” to move higher, lend­ing ad­di­tional sup­port to the broader mar­ket, they said.

Turnover re­mained thin as many in­vestors were cau­tious ahead of the re­lease of the U.S. July non-farm pay­roll re­port due out later in the day, want­ing to get a feel for the state of the world’s largest econ­omy be­fore mak­ing more bets, they added.

The weighted in­dex on the Tai- wan Stock Ex­change closed down 7.27 points, or 0.08 per­cent, at 8,442.29, af­ter mov­ing be­tween 8,368.40 and 8,458.04, on turnover of NT$75.44 bil­lion (US$2.38 bil­lion).

The mar­ket opened down 0.60 per­cent and quickly fell to the day’s low in the wake of the losses in­curred on Wall Street overnight.

Bar­gain Hunt­ing Emerged

But as the in­dex ap­peared headed to 8,300 points, bar­gain hunt­ing emerged, with a stronger Lar­gan also trig­ger­ing buy­ing in se­lect high-tech stocks in the Ap­ple sup­ply chain, deal­ers said.

“It seemed that some tech­ni­cal sup­port ex­isted ahead of 8,300 points af­ter the mar­ket fell sharply yesterday,” KGI Se­cu­ri­ties an­a­lyst Phil Chu said. “It was good to see Lar­gan shares bounce back, im- prov­ing mar­ket sen­ti­ment to some ex­tent.”

Lar­gan, the most ex­pen­sive stock in the lo­cal mar­ket, rose 7.90 per­cent to close at NT$2,935.00 af­ter the com­pany is­sued a dis­claimer to re­but ru­mors that af­fected its share price on Thurs­day.

Ru­mor about Lar­gan

Spec­u­la­tion that Lar­gan had re­vealed to the media that its sales in Au­gust were rel­a­tively un­changed from July was cir­cu­lated through LINE links on Thurs­day, send­ing the stock into a tail­spin be­cause it con­tra­dicted Lar­gan’s guid­ance that sales in Au­gust would be higher than in July.

In its dis­claimer, Lar­gan said it did not talk to the media, and it urged in­vestors to pay at­ten­tion to the ac­tual num­bers.

The Fi­nan­cial Su­per­vi­sory Com- mis­sion, the top fi­nan­cial reg­u­la­tor in Tai­wan, said it will in­ves­ti­gate who spread the false neg­a­tive leads.

Ap­ple Sup­pli­ers Re­bounded

Led by Lar­gan, other Ap­ple sup­pli­ers also re­bounded, deal­ers said.

Among them, Pe­ga­tron Corp. ( ), an as­sem­bler of the iPhone 6, rose 3.23 per­cent to end at NT$83.10 af­ter a 4.51 per­cent drop a day ear­lier, while Flex­ium In­ter­con­nect Inc., a printed cir­cuit board sup­plier, gained 4.35 per­cent to close at NT$96.00 af­ter a 7.54 per­cent fall the pre­vi­ous day.

Un­der­per­form­ing the broader mar­ket, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the most heav­ily weighted stock in the lo­cal mar­ket, fell 0.75 per­cent to end at NT$133.00, although the stock re­cov­ered from a low of NT$131.50 on late-ses­sion buy­ing.

Other Sec­tors

In the non-high-tech sec­tor, food maker Uni-Pres­i­dent En­ter­prises Corp. ( ) fell 0.56 per­cent to end at NT$52.80, and Mega Fi­nan­cial Hold­ing Co. ( ) shed 1.29 per­cent to close at NT$26.85.

“Af­ter yesterday’s 1.08 per­cent fall, the main board en­tered con­sol­i­da­tion mode. I ex­pect that the in­dex will move be­tween 8,300 points and 8,500 points in the near term,” Chu said.

Chu said the up­com­ing U.S. job data could serve as a barom­e­ter of the U.S. econ­omy, which could move Wall Street and even global fi­nan­cial mar­kets, leav­ing in­vestors ner­vous about in­vest­ing too much be­fore the data was re­leased.

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