Shares boosted by the IC & petro­chem­i­cal sec­tors

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan jumped more than 1 per­cent Wed­nes­day on gains posted by the in­te­grated cir­cuit sec­tor led by IC de­signer Me­di­aTek Inc. ( ) and con­tract chip-maker Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), deal­ers said.

The petro­chem­i­cal sec­tor also at­tracted strong buy­ing to lift the mar­ket’s in­dex fur­ther as in­vestors were buoyed by a re­bound in in­ter­na­tional crude oil prices overnight, they said.

Mar­ket sen­ti­ment was bet­ter than in re­cent ses­sions be­cause of a rally in Hong Kong Wed­nes­day morn­ing spurred by hopes that the Chi­nese gov­ern­ment will carry out more eco­nomic stim­u­lus mea­sures, they said.

Closed up 101.13 Points

The weighted in­dex on the Tai­wan Stock Ex­change closed up 101.13 points, or 1.20 per­cent, at the day’s high of 8,495.23, off an early low of 8,385.04, on turnover of NT$92.89 bil­lion (US$2.84 bil­lion).

The mar­ket opened up 4.43 points on fol­low-through buy­ing from a ses­sion ear­lier, and the mo­men­tum con­tin­ued as the semi­con­duc­tor and petro­chem­i­cal sec­tors sus­tained their early gains, deal­ers said.

Buy­ing was even more ev­i­dent in the af­ter­noon ses­sion as in­vestors, en­cour­aged by the gains posted in Hong Kong’s mar­ket, pumped more funds into large-cap stocks in Tai­wan, push­ing the in­dex to the day’s high at the 1:30 p.m. close, they said.

“The rally on the Hong Kong mar­ket showed the mar­ket’s high hopes that China’s gov­ern­ment will carry out more mea­sures to boost the econ­omy and even the eq­uity mar­ket,” Concord Se­cu­ri­ties an­a­lyst Kerry Huang said.

“Many eq­uity traders in the re­gion have an­tic­i­pated that shares in Shang­hai and Shen­zhen will get a boost from the gov­ern­ment’s sup­port,” Huang said, adding that a ris­ing mar­ket in China should give traders in other re­gional ex­changes more in­cen­tive to buy.

Chi­nese mar­kets will re-open Thurs­day af­ter a seven-day Na­tional Day hol­i­day.

The bell­wether elec­tron­ics sec­tor closed up 1.21 per­cent and the semi­con­duc­tor sub-in­dex rose 1.98 per­cent, in­di­cat­ing that high-tech stocks played a ma­jor role in the Tai­wan mar­ket’s rally on Wed­nes­day, Huang said.

Ris­ing IC Stocks

Among the ris­ing IC stocks, Me­di­aTek gained 5.31 per­cent to close at NT$258.00, with 15.53 mil­lion shares chang­ing hands, af­ter the IC de­signer re­ported higher-thanex­pected sales for the third quar­ter on Wed­nes­day.

Me­di­aTek’s con­sol­i­dated sales for the quar­ter were up 21.08 per­cent from a quar­ter ear­lier at NT$56.96 bil­lion, beat­ing the com­pany’s pre­vi­ous sales forecast of be­tween NT$51.7 bil­lion and NT$55.5 bil­lion.

TSMC, the most heav­ily weighted stock in the lo­cal mar­ket, rose 1.50 per­cent to end at NT$135.00 af­ter a U.S.-based bro­ker­age said the Tai­wanese chip-maker is ex­pected to se­cure all of Ap­ple Inc.’s or­ders for pro­duc­tion of the next gen­er­a­tion A10 pro­ces­sor.

Buck­ing the up­turn on the broader mar­ket, smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. (

) fell 0.56 per­cent to close at NT$2,675.00, as in­vestors pock­eted some of the 8.47 per­cent gains built on Tues­day.

But Lar­gan still re­mained the most ex­pen­sive stock in the lo­cal mar­ket.

Petro­chem­i­cal Sec­tor

The petro­chem­i­cal sec­tor ended up 2.76 per­cent af­ter in­ter­na­tional crude oil prices re­bounded al­most 5 per­cent overnight.

Among the gain­ing stocks, Formosa Plas­tics Corp. ( ) added 4.03 per­cent to close at NT$74.90, and Nan Ya Plas­tics Corp. (

) rose 3.03 per­cent to end NT$61.30.

“I ex­pect lo­cal shares will con­tinue to move higher in the near fu­ture, but how far the mar­ket will go will de­pend on the Chi­nese econ­omy,” Huang said.


Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.