Tai­wan shares end trad­ing day lower at 8,394.14

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed lower Tues­day af­ter in­vestors pock­eted their ear­lier gains par­tic­u­larly in old econ­omy and fi­nan­cial stocks, push­ing the broader mar­ket into neg­a­tive ter­ri­tory, deal­ers said.

How­ever, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC,

), along with other mar­ket blue chips such as smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ), at­tracted buy­ing, which helped pre­vent the broader mar­ket from fall­ing fur­ther at the close, deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 72.70 points, or 0.85 per­cent, at the day’s low of 8,394.14, off an early high of 8,586.22. Turnover to­taled NT$99.68 bil­lion (US$3.12 bil­lion) dur­ing the ses­sion.

The mar­ket opened up 1.16 per­cent and rose to the day’s high as in­vestors took cues from a soar­ing Wall Street overnight, where the Dow Jones In­dus­trial Av­er­age gained 1.39 per­cent and the tech­heavy NAS­DAQ in­dex rose 1.16 per­cent, deal­ers said.

How­ever, af­ter the lo­cal in­dex moved to the near­est tech­ni­cal re­sis­tance point at around 8,600 points, selling set in, es­pe­cially in large-cap stocks in the old econ­omy and fi­nan­cial sec­tors, deal­ers said. This pulled down share prices as a whole, while se­lect elec­tron­ics heavy­weights re­mained re­silient, lend­ing some sup­port to the broader mar­ket, deal­ers said.

Tech­ni­cal Hur­dles Ahead of

8,600 Points

“The tech­ni­cal hur­dles ahead of 8,600 points re­mained high, and that’s why in­vestors tended to lock in their prof­its that re­sulted from a higher Wall Street, and then stepped back from the trad­ing floor,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-cheng said.

“The ini­tial gains on the lo­cal main board failed to spur in­vestors to chase share prices for the rest of the trad­ing ses­sion, which in­di­cated that mar­ket sen­ti­ment re­mained cau­tious af­ter the re­cent sell-off,” Chang said, re­fer­ring to the about 1,500 point drop in the weighted in­dex be­tween late April and Aug. 10.

He said in­vestors are still wary of a pos­si­ble in­ter­est rate hike by the U.S. Fed­eral Re­serve later in the year, which may drain funds out of the re­gion as for­eign in­vestors move their money back home.

“To­day’s selling fo­cused on fi­nan­cial and old econ­omy stocks as in­vestors were en­cour­aged by the gains posted by TSMC’s Amer­i­can de­posi­tary re­ceipts (ADRs) overnight to move their funds into the elec­tron­ics sec­tor,” Chang said.

Lar­gan’s gains also re­flected Tues­day’s ro­ta­tional buy­ing, he said.

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