Tai­wan shares end higher on con­tin­ued buy­ing in fi­nan­cials

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed higher Wed­nes­day as the fi­nan­cial sec­tor con­tin­ued its mo­men­tum from the pre­vi­ous day, help­ing the broader mar­ket to rise for the sec­ond con­sec­u­tive ses­sion, deal­ers said.

The gains among fi­nan­cial stocks off­set the selling in the bell­wether elec­tron­ics sec­tor, which was fo­cused on large-cap stocks such as con­tract chip maker Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ) and smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ), they said.

De­spite the gains, in­vestors re­mained cau­tious about the mar­ket’s move­ment as the global eq­uity mar­kets re­mained volatile amid lin­ger­ing con­cerns over main­land China’s econ­omy, the world’s sec­ond largest, deal­ers added.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 39.95 points, or 0.52 per­cent, at 7,715.59, af­ter mov­ing be­tween 7,547.61 and 7,762.45. Turnover to­taled NT$109.29 bil­lion (US$3.36 bil­lion) dur­ing the ses­sion.

Fall on Wall Street Overnight

The mar­ket opened down 0.55 per­cent in a knee-jerk re­ac­tion to a fall on Wall Street overnight. The Dow Jones In­dus­trial Av­er­age slumped from its early gains to close 1.29 per­cent lower, although main­land China an­nounced a rate cut to boost its econ­omy.

The lo­cal main board

con­tin- ued a choppy ses­sion in a see­saw move­ment be­tween in­vestors who rushed to lock in their gains in high-tech stocks and oth­ers who con­tin­ued to buy into the fi­nan­cial sec­tor, deal­ers said.

“The fi­nan­cial sec­tor is a fa­vorite for gov­ern­ment-led funds,” said Mega In­ter­na­tional In­vest­ment Ser­vices Corp. an­a­lyst Alex Huang.

“Judg­ing from the gains posted by the sec­tor, I sus­pect that the buy­ing came from these funds as the gov­ern­ment has been ea­ger to sup­port the in­dex.”

On Tues­day, the Na­tional Fi­nan­cial Sta­bi­liza­tion Fund Com­mit­tee gave ap­proval for in­ter­ven­tion in the lo­cal eq­uity mar­ket af­ter lo­cal shares were hard hit by the volatil­ity of the global mar­ket.

In ad­di­tion, ma­jor gov­ern­men­tled funds, such as the la­bor pen­sion fund, were said to be in the mar­ket, pick­ing up bar­gains.

The fi­nan­cial sub-in­dex closed up 2.37 per­cent, also in re­flec­tion of a se­ries of mea­sures by the Fi­nan­cial Su­per­vi­sory Com­mis­sion to en­cour­age fi­nan­cial in­sti­tu­tions to buy stocks, Huang said.

Ris­ing Fi­nan­cial Stocks

Among the ris­ing fi­nan­cial stocks, CTBC Fi­nan­cial Hold­ing Co. (

) climbed 6.01 per­cent to close at NT$19.40, Cathay Fi­nan­cial Hold­ing Co. ( ) added 3.24 per­cent to end at NT$44.60, and Fubon Fi­nan­cial Hold­ing Co. ( ) gained 2.89 per­cent to fin­ish at NT$53.40.

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