Taiwan shares end higher on continued buying in financials
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.