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Taiwan shares close above 7,800 barrier on high liquidity

Taiwan shares close above 7,800 barrier on high liquidity

Taipei, Feb. 8 (CNA) Share prices in Taiwan closed above the 7,800 mark for the first time in nearly six months on ample liquidity and institutional buying, dealers said. With concerns over the eurozone's debt problems easing to some extent, buying rotated to large cap electronics stocks, in particular to companies in the Apple supply chain, after shares of the U.S. consumer electronics giant hit a record high overnight, they said. Interest also emerged in searching for bargains among old economy stocks, such as auto makers, on hopes that increasing cross-strait ties will strengthen their profitability, they said. The weighted index closed up 162.47 points, or 2.10 percent, at the day's high of 7,869.91, off an early low of 7,766.38, on turnover of NT$160.32 billion (US$5.43 billion). It was the first time the index had closed above 7,800 points since August 15 last year. The market opened up 0.84 percent after Wall Street reversed its early losses amid easing concerns over debt-ridden Greece's financial situation on hopes the European country will soon secure a new round of bailout money, dealers said. The momentum increased as buying focused on market heavyweights, such as Hon Hai Precision Industry Co., which makes iPhones and iPads for Apple, while the strength of old economy stocks helped the index vault past the 7,800-point level by the end of the session, they said. "The market has benefited from further fund inflows as foreign institutional investors continue to rebuild their portfolios after recent adjustments made before the Lunar New Year holiday," Horizon Securities analyst Benson Huang said. Huang said the market steamed ahead without any major glitches during the trading session on strong institutional buying interest to overcome technical resistance ahead of the 7,800-point level. "Judging from the current enthusiasm, I expect the index will continue to power ahead to challenge the 220-day moving average of 7,989 points very soon," Huang said. Food shares scored the highest gains among the eight largest sectors of the market, finishing up 3.2 percent. Construction shares gained 2.9 percent, and the financial and the machinery and electronics sectors each rose 2.4 percent. Textiles and paper and pulp stocks added 1.6 percent, plastics and chemicals rose 1.3 percent, and the cement sector closed up 0.5 percent. Led by Hon Hai Precision, which closed up 4.32 percent at NT$101.50, "Apple concept stocks" gained on hopes that rising sales of Apple products will boost their profitability, dealers said. Among them, cell phone camera lens maker Largan Precision rose 5.15 percent to end at NT$694.00 and casing supplier Catcher Technology gained 7 percent, the maximum daily increase, to close at NT$200.00. In the old economy sector, food maker Uni-President Enterprises rose 4.65 percent to close at NT$45.05 and Yulon Nissan Motor rose 7 percent to end at NT$211.00. (By Frances Huang)


Updated : 2021-10-23 20:23 GMT+08:00