Lo­cal shares end up but still shy of 8,400-point mark, turnover re­mains mod­er­ate

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan closed higher Tues­day, with the in­dex still off an ear­lier high, end­ing be­low the 8,400-point mark while turnover re­mained mod­er­ate, fail­ing to give a sig­nif­i­cant boost to the mar­ket, deal­ers said.

While many large-cap stocks in the bell­wether elec­tron­ics sec­tor moved in a nar­row range, Lar­gan Pre­ci­sion Co. ( ), a smart­phone cam­era lens sup­plier to Ap­ple Inc., at­tracted strong buy­ing af­ter the com­pany re­ported bet­terthan-ex­pected sales for Septem­ber, the deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change ended up 41.74 points, or 0.49 per­cent, at 8,394.10, af­ter mov­ing be­tween 8,390.89 and 8,482.83 on turnover of NT$99.62 bil­lion (US$3.05 bil­lion).

The mar­ket opened up 0.68 per­cent to breach 8,400 points and mo­men­tum con­tin­ued as in­vestors took cues from a 1.85 per­cent hike on the Dow Jones In­dus­trial Av­er­age and a 1.56 per­cent rise on the tech-heavy NAS­DAQ in­dex overnight, the deal­ers said.

While Lar­gan led the elec­tron­ics sec­tor to move higher, the broader mar­ket faced some re­sis­tance, with other high-tech heavy­weights mov­ing in ranged trade to com­pro­mise the up­turn to­ward the end of the ses­sion, they said.

“To­day’s trad­ing vol­ume re­mained mod­er­ate, so it was no sur­prise that the in­dex did not stand well above the cru­cial 8,400 points at the close,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-cheng said. “If turn- over had breached NT$100 bil­lion or ex­panded fur­ther, the gains would have been more sig­nif­i­cant.”

Chang said that be­fore the earn­ings sea­son kicks off next week,

In­vestors Re­luc­tant to

Chase Prices

“In­vestors tended to re­mained cau­tious and were re­luc­tant to chase prices for the mo­ment.” Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the world’s largest con­tract chip-maker, is sched­uled to hold an in­vestor con­fer­ence Oct. 15 to cast light on its earn­ings sea­son.

The elec­tron­ics sub-in­dex closed up 0.40 per­cent and the op­to­elec­tron­ics sub-in­dex ended up 2.21 per­cent, led by Lar­gan, which rose 8.47 per­cent to close NT$2,690, with 2.23 mil­lion shares chang­ing hands.

Buy­ing in Lar­gan emerged soon af­ter the lo­cal main board opened be­cause the com­pany re­ported that it posted NT$5.52 bil­lion in con­sol­i­dated sales in Septem­ber, up 4 per­cent from a month ear­lier and also up 19 per­cent from a year ear­lier on the back of an in­crease in or­ders placed by Ap­ple Inc. The month-on-month growth beat an ear­lier com­pany pre­dic­tion that Septem­ber rev­enue would be lit­tle changed from Au­gust.

Elec­tron­ics Sub-in­dex

“As Lar­gan is the most ex­pen­sive stock in the lo­cal mar­ket, its gains meant that a large chunk of funds flocked in, which is why other high- tech heavy­weights failed to register sig­nif­i­cant up- turns,” Chang said.

TSMC, t he most heav­ily weighted stock in the lo­cal mar­ket, rose 0.38 per­cent to close at NT$133.00, and Hon Hai Pre­ci­sion In­dus­try Co. ( ) gained 0.47 per­cent to end at NT$86.40.

Old Econ­omy Sec­tor

In the old econ­omy sec­tor, Formosa Plas­tics Corp. ( ) rose 1.98 per­cent to close at NT$72.00, and food-maker Uni-Pres­i­dent En­ter­prises Corp. ( ) added 0.69 per­cent to end at NT$58.40, while Eclat Textile Co. ( ) closed down 2.78 per­cent at NT$490.00.

“I ex­pect that the broader mar­ket will con­tinue to be con­fined to nar­row fluc­tu­a­tions over the next few ses­sions be­fore the up­com­ing earn­ings sea­son moves share prices,” Chang said.

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