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Taiwan shares close down 0.12 percent

Taiwan shares close down 0.12 percent

Taiwan share prices closed 0.12 percent lower yesterday amid cautious sentiment after a rally in the previous session as investors took cues from the U.S. Federal Reserve Board's concerns about the American economic climate, dealers said.
The weighted index fell 9.99 points to 7,704.52, after moving between 7,681.87 and 7,732.31, on turnover of NT$103.31 billion (US$3.21 billion).
The market opened down 0.19 percent on Wall Street's lackluster performance overnight after the Fed comments, and continued to move in a narrow range with many investors sidelined on fears that the bourse would suffer a technical pullback after it breached the 7,700 points Wednesday, dealers said.
A total of 1,575 stocks closed down and 1,570 up with 394 remaining unchanged.
The cement sector fell the steepest, losing 0.5 percent. The textile, plastics and chemical, and machinery and electronics sectors all closed 0.3 percent lower.
However, the paper and pulp sector gained 0.7 percent and the financial sector rose 0.5 percent, while the foodstuff and construction sectors finished 0.4 percent higher.
"It was no surprise that the local market technically took a break after Wednesday's 1.54 percent hike," President Securities analyst Vickie Hsieh said.
"The Fed's cautious comments on the U.S. economy added fears in the local market that Wall Street may become volatile after its recent strong showing, which would affect other bourses," Hsieh said.
She said investors were also watching closely how other major U.S. corporations will report their second quarter earnings after Intel announced the best ever quarterly profit Tuesday.
But, Hsieh said, the upward trend of the local market will continue as investors have been optimistic about the domestic economy since Taiwan and China signed an economic cooperation framework agreement in June.
"The financial sector, in particular, will be a good investment as it will benefit from further liberalization of financial exchanges across the Taiwan Strait," Hsieh said.
"Recent buying into financial stocks by foreign institutional investors was evidence of an upbeat mood," she said.
The financial sector appeared resilient, compared with the broader market, with Chinatrust Financial closing up 2.34 percent at NT$19.65 and Chang Hwa Bank gaining 2.19 percent to reach NT$16.30.


Updated : 2021-05-16 04:48 GMT+08:00