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Taiwan shares close down 0.51 percent

Taiwan shares close down 0.51 percent

Taipei, July 16 (CNA) Taiwan share prices closed down 0.51 percent Friday, largely in response to losses posted by other regional markets amid concerns over the pace of global economic recovery, dealers said.
The weighted index fell 39.95 points to 7,664.57 after moving between 7,660.76 and 7,719.05 on turnover of NT$120.84 billion (US$3.76 billion).
The market opened up 0.12 percent, but the momentum diminished immediately after investors witnessed other regional markets suffering selling pressure on renewed worries over the world's economy, dealers said.
Select large high-tech stocks continued to take a beating as the market feared global consumption would be affected, while the financial sector extended its gains from the previous session on hopes that increasing cross-strait exchanges will boost their bottom lines.
"The lower-than-expected second quarter economic growth in China and the United States Federal Reserve Board's recent cautious comments on the U.S. economy continued to weigh on markets in the region. Taiwan was no exception, " Grand Cathay Securities analyst Mars Hsu said.
"Worries among investors at home and abroad are running deeper, with doubt that the global economy will sustain its strength in the second half of this year," Hsu said.
The machinery and electronics sector suffered the heaviest losses, dropping 1.0 percent. The textile and the paper and pulp sectors closed down 0.7 percent each, while the foodstuff sector fell 0.5 percent. The cement sector lost 0.3 percent and the plastics and chemical sector dropped 0.1 percent.
The financial and construction sectors, however, both rose 1.1 percent.
A total of 2,165 stocks closed up and 1,144 down, with 239 remaining unchanged.
The local bourse fell below 7,700 points again at the end of the session, which Hsu attributed to strong technical resistance.
"Many investors here have been unwilling to chase prices and boost the index. They were seeking opportunities to pocket profits, " he said.
Flat panel firms have been targeted by profit-taking as investors were worried that rising inventories will impact demand and affect prices, dealers said.
Chimei Innolux fell 2.45 percent to NT$34.55, and rival AU Optronics lost 1.64 percent to NT$29.95.
Resilient financial stocks prevented the broader market from falling further as foreign institutional investors kept buying into the sector amid optimism toward its earnings outlook, dealers said.
Taiwan Business Bank rose 5.32 percent to NT$9.51 and Chang Hwa Bank added 4.60 percent to NT$17.05.
(By Frances Huang)




Updated : 2020-12-04 16:25 GMT+08:00