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Local bourse moves higher on Wall Street gains

Local bourse moves higher on Wall Street gains

The local bourse regained momentum and closed higher in reflection of rising prices on Wall Street overnight after Washington reported better-than-expected initial unemployment data, dealers said.
However, strong technical resistance ahead of the 8,200 point mark compromised early gains and kept the market movement in a narrow range throughout the trading session, they said.
The weighted index ended up 25.70 points or 0.31 percent at 8,144.04, after moving between 8,114.14 and 8170.72, on turnover of NT$131.73 billion (US$4.48 billion).
The market opened up 0.57 percent on a knee-jerk reaction to the Wall Street gains, but as the index moved closer to 8,200 points during the session, profit-taking pressure emerged to cap the gains, the dealers said.
While large-cap electronics and financial stocks remained stagnant as turnover failed to expand significantly, certain old economy stocks, such as construction and auto firms, attracted rotational buying on the back of ample liquidity, they said.
The market will open Saturday, which is expected to make up for reduced trading sessions for the just concluded long holiday weekend.
"The market remained in a consolidation mode," E. Sun Investment Consulting analyst Liu Yi-ho said. "It will need some time to digest pressure and jump over the technical hurdles before 8,200 points."
Liu said that after a recent significant showing, the market has been overheated technically, referring to a more-than 8 percent jump in share prices in the past month.
"The failure for turnover to expand reflected fears of a possible major pullback, as many investors retreated from the trading floor," Liu said.
"It is possible that the market will remain quiet March 3, as many foreign institutional investors will be away for the weekend," he said.
The construction sector scored the highest gains among the eight largest sectors of the market, finishing up 0.9 percent amid improved sentiment toward the domestic property market.
The plastics and chemicals, along with machinery and electronics sectors rose 0.5 percent, foodstuffs, and paper and pulp stocks gained 0.4 percent, and textiles added 0.1 percent, while financials fell 0.3 percent and cement shares closed down 0.2 percent.
Among the auto stocks, Yulon Nissan Motor gained 6.49 percent to close at NT$246.00 and Hotai Motor rose 2.62 percent to end at NT$215.50 after the local car market reported a year-on-year increase in sales volume for February.
Bucking the fall on the broader market, Mega Financial closed down 3.10 percent at NT$21.85 and First Financial ended down 1.35 percent at NT$18.30.


Updated : 2021-07-24 12:15 GMT+08:00