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