Shares higher, close at 8,181.24 as elec­tron­ics sec­tor ends the day up

The China Post - - LOCAL -

Shares in Tai­wan re­couped ear­lier losses to close higher Wed­nes­day as the bell­wether elec­tron­ics sec­tor as a whole moved higher on the back of bar­gain hunt­ing led by large-cap stocks such as Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), deal­ers said.

How­ever, Lar­gan Pre­ci­sion Co. ( ), a smart­phone cam­era lens sup­plier to Ap­ple Inc., came un­der heavy pres­sure through­out the ses­sion as in­vestors took into ac­count a down­grade by a for­eign bro­ker­age in the Tai­wanese firm’s earn­ings, the deal­ers said.

De­spite a re­cov­ery from the weighted in­dex’s ear­lier losses, in­vestor sen­ti­ment re­mained cau­tious about the mar­ket out­look amid lin­ger­ing con­cerns over the global econ­omy and an in­ter­est rate hike by the U.S. Fed­eral Re­serve, they added.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 48.89 points, or 0.60 per­cent, at the day’s high of 8,181.24, off an early low of 8,059.68, on turnover of NT$102.23 bil­lion (US$3.11 bil­lion).

The mar­ket opened down 0.66 per­cent as in­vestors took into ac­count volatil­ity on the global eq­uity mar­kets in the past two ses­sions, when the Tai­wan mar­ket was closed for the mid-Au­tumn Fes­ti­val hol­i­day and due to an in­ter­rup­tion from Typhoon Du­jian the fol­low­ing day, the deal­ers said.

With the in­dex mov­ing to the near­est tech­ni­cal sup­port range be­tween 8,030 and 8,070, bar­gain hun­ters be­came ac­tive to pick up mar­ket heavy­weights, in­clud­ing TSMC and other semi­con­duc­tor stocks, to help the broader mar­ket close above the pre­vi­ous clos­ing level, they said.

“Af­ter Mon­day’s slump, the Dow Jones In­dus­trial Av­er­age re­cov­ered overnight. In ad­di­tion, a re­bound on the Tokyo and Shang­hai mar­kets to­day also prompted in­vestors here to pick up bar­gains,” Mega In­ter­na­tional In­vest­ment Ser­vices Corp. an­a­lyst Alex Huang said.

Bell­wether Elec­tron­ics Sec­tor

“On the back of a re­bound by the bell­wether elec­tron­ics sec­tor as a whole, the en­tire main board climbed out of its ear­lier slump and closed higher,” Huang said. “TSMC served as an an­chor to sta­bi­lize the broader mar­ket.”

The elec­tron­ics sub- in­dex closed up 0.95 per­cent at 316.37 points, off an early low of 310.68, while the semi­con­duc­tor sub-in­dex ended up 1.77 per­cent. TSMC, the most heav­ily weighted stock in the lo­cal mar­ket, closed up 2.36 per­cent to close at NT$130.00, in­te­grated cir­cuit de­signer Me­di­aTek Inc. ( ) rose 2.74 per­cent to end at NT$243.50, and IC pack­ag­ing and test­ing ser­vices provider Ad­vanced Semi­con­duc­tor En­gi­neer­ing Inc. (

) gained 2.17 per­cent to end at NT$35.30.

Buck­ing the up­turn, Lar­gan fell 6.23 per­cent to close at NT$ 2,560.00 af­ter Cit­i­group Global Mar­kets cut its forecast of Lar­gen’s earn­ings per share for 2015 and 2016, a move that led in­vestors to ig­nore record first week­end sales of the iPhone 6s and iPhone 6s Plus.

Fi­nan­cial Stocks

Bar­gain hunt­ing also lifted se­lect fi­nan­cial stocks, Huang said. Cathay Fi­nan­cial Hold­ing Co. (

) was one of them, up 0.22 per­cent to close at NT$44.95, off an early low of NT$43.40.

“The lo­cal main board is likely to con­tinue to re­bound, but the room for gain could be lim­ited, as tech­ni­cal hur­dles are ex­pected to emerge at around 8,400 points,” Huang said. “In­vestor con­fi­dence re­mained over­shad­owed by fears over fur­ther tur­moil in the global mar­kets at a time when ma­jor economies, in par­tic­u­lar China, are slow­ing down.”

“More im­por­tant, a pos­si­ble in­ter­est rate hike by the U.S. Fed­eral Re­serve is ex­pected to keep in­vestors alert,” Huang said.

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