Do­mes­tic shares end above 7,800 points fol­low­ing Wall Street gains

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed above the 7,800 point mark Thurs­day af­ter Wall Street bounced back strongly overnight on hopes that the U.S. Fed­eral Re­serve is in no hurry to raise in­ter­est rates, deal­ers said.

The lo­cal bell­wether elec­tron­ics sec­tor sim­ply fol­lowed high­tech stocks in the U.S. mar­ket to move higher as “Ap­ple con­cept stocks” led the up­turn in the wake of a sig­nif­i­cant re­bound staged by Ap­ple Inc. shares overnight, they said.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 108.96 points, or 1.41 per­cent, at 7,824.55, af­ter mov­ing be­tween 7,762.63 and 7,856.40, on turnover of NT$108.99 bil­lion.

The mar­ket opened up 0.75 per­cent on the back of a 3.95 per­cent spike in the Dow Jones In­dus­trial Av­er­age and a 4.24 per­cent rise in the tech-heavy NAS­DAQ in­dex overnight, deal­ers said.

Mo­men­tum ac­cel­er­ated, led by high- tech heavy­weights in the Ap­ple sup­ply chain, as such smart­phone cam­era lens maker Lar­gan Pre­ci­sion Co. ( ) and me­tal casing sup­plier Catcher Tech­nol­ogy Co. ( ), af­ter Ap­ple’s shares posted 5.74 per­cent gains on Wall Street to vault the in­dex past 7,800 points by the

end of the ses­sion, they said.

Gains on Wall Street Overnight

“Af­ter re­cent sell-off, the lo­cal eq­uity mar­ket sim­ply staged a tech­ni­cal re­bound to­day by seiz­ing the gains posted on Wall Street overnight as a cause to buy,” Concord Se­cu­ri­ties an­a­lyst Kerry Huang said. “The elec­tron­ics sec­tor was in fo­cus amid buy­ing as many high­tech stocks had been over­sold.”

Among the ris­ing sup­pli­ers to Ap­ple, Lar­gan, the most ex­pen­sive stock in the lo­cal mar­ket, rose 2.78 per­cent to close at NT$2,960.00, off an early high of NT$3,030.00, and Catcher also gained 6.69 per­cent to end at NT$335.00.

“Lar­gan is a barom­e­ter of buy­ing in­ter­est in the lo­cal mar­ket. Its gains have been en­cour­ag­ing to many in­vestors. But, based on to­day’s move­ments, the stock has been faced with stiff tech­ni­cal re­sis­tance ahead of the 20-day mov­ing av­er­age of around NT$3,000,” Huang said. The elec­tron­ics subindex closed up 1.83 per­cent.

Elec­tron­ics Sec­tor

Also in the elec­tron­ics sec­tor, con­tract chip-maker Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (

), the most heav­ily weighted stock in the lo­cal mar­ket, added 1.22 per­cent to NT$124.00, and Hon Hai Pre­ci­sion In­dus­try Co. (

), which as­sem­bles iPhones and iPads for Ap­ple, rose 1.32 per­cent to end at NT$84.60.

Con­tract notebook com­puter maker Wistron Corp. ( ) gained 10 per­cent, the max­i­mum daily in­crease, to close at NT$15.05 af­ter the com­pany un­veiled a pro­gram Wed­nes­day to buy back up to 80 mil­lion shares from the open mar­ket at a price range be­tween NT$12-NT$23.

Fi­nan­cial Sub-in­dex

The fi­nan­cial sub-in­dex ended up 0.79 per­cent but un­der­per­formed the broader mar­ket since some in­vestors locked in their ear­lier gains built for fi­nan­cial stocks in the past few ses­sions, Huang said.

In the sec­tor, E. Sun Fi­nan­cial Hold­ing Co. ( ) gained 0.78 per­cent to close at NT$19.40, while Cathay Fi­nan­cial Hold­ing Co. (

) ended un­changed at NT$44.60, and CTBC Fi­nan­cial Hold­ing Co. (

) fell 1.03 per­cent to close at NT$19.20.

“Although the weighted in­dex closed above 7,800 points, whether the re­bound will con­tinue will de­pend on how Wall Street will per­form,” Huang said.

“If the Chi­nese yuan turns sta­ble, in­vestor con­fi­dence in the global fi­nan­cial mar­kets, in­clud­ing Wall Street, will re­cover ac­cord­ingly, and the Taipei mar­ket will fol­low suit to move even higher,” he said.

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