Shares boosted by the IC & petrochemical sectors
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.
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.