Shares edge up to 8,305.03 in consolidation
Shares in Taiwan closed slightly higher after moving in a narrow range since a mixed Wall Street failed to provide investors here with a clear indication to trade, dealers said.
Turnover shrank amid lingering cautious sentiment toward the global economy and such thin trading volume kept many large-cap stocks of the bellwether electronics sector in the doldrums throughout the session, they said.
The weighted index on the Taiwan Stock Exchange ended up 9.09 points, or 0.1 percent, at 8,305.03, after moving between 8,254.23 and 8,320.66, on turnover of NT$73.59 billion (US$2.23 billion).
The market opened 2.0 points lower and fell to the day’s low as investors locked in their strong gains from the 1.4 percent rise seen a session earlier, and the index continued moving in consolidation mode with Taiwan Semiconductor Manufacturing Co. (TSMC, ), the most heavily weighted stock in the market, suffering relatively heavier selling, dealers said.
But, some stocks in the optoelectronics sector, including smartphone camera lens supplier Largan Precision Co. ( ) continued to attract bargain hunters after a recent sell-off, lending some support to the broader market, they said.
“Look at the low turnover. There is no doubt that many investors were reluctant to trade for the moment as they remained overshadowed by worries over the global economy, in particular the China economy,” Concord Securities analyst Kerry Huang said.
“China is in its prolonged Oct. 1 National Day holiday. Many investors here are simply waiting for new China economic data due after the holiday next week before mapping out their investment strategies,” Huang said.
The bellwether electronics sector closed down 0.02 percent and the semiconductor sub-index ended down 0.64 percent after TSMC, the world’s largest contract chip maker, fell 1.12 percent to close at NT$132.00 with 25.24 million shares changing hands after a 2.69 percent rise recorded a session earlier.