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Taiwan shares close up 0.69 percent

Taiwan shares close up 0.69 percent

Taiwan share prices closed up 0.69 percent yesterday amid ample liquidity as buying focused largely on large cap stocks due to their relatively low valuations, dealers said.
The weighted index rose 54.57 points to 7,890.11, after moving between 7,859.33 and 7,911.66, on turnover of NT$120.29 billion (US$3.77 billion).
The market opened up 0.83 percent on a technical rebound from the previous session as investors rushed to pick up market heavyweights that had been consolidating for some time, making their share prices look attractive, dealers said.
But the gains were compromised by strong resistance at around the 7,900 point level, they said.
A total of 2,058 stocks closed up and 1,650 down, while 326 remained unchanged.
Foodstuffs posted the highest gains, up 1.35 percent. Cement stocks gained 1.34 percent, financials rose 1.11 percent, and plastics and chemical, and machinery and electronics shares finished 0.64 percent higher.
The textile sector rose 0.31 percent and the paper and pulp sector added 0.07 percent, while construction stocks fell 0.14 percent.
"It was a fund-driven upside as many investors found a safe haven to park money, " TLG Asset Management analyst Arch Shih said, ""Low-priced large cap stocks, especially bellwether electronics, served as a magnet for idle funds."
However, the buying did not mean investors are not still concerned about global demand for high tech products, Shih said.
"The gains were quite technical. I doubt many investors will continue to chase prices, and the market is expected to move in a range trade next week," he said.
Shih said for day-trade investors, more attention should be paid to Wall Streets' movement before determining trading strategies.
Among the high tech heavyweights, flat panel maker Chimei Innolux rose 2.82 percent to NT$38.25 and rival AU Optronics gained 1.16 percent to finish at NT$30.40.
In the LED sector, Epistar added 6.98 percent to close at NT$90.40 and Bright LED Electronics rose 6.90 percent to NT$37.20.


Updated : 2021-01-24 15:25 GMT+08:00