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Technical rebound sends Taiwan shares higher

Technical rebound sends Taiwan shares higher

Taipei, Oct. 30 (CNA) Shares on the Taiwan Stock Exchange staged a technical rebound Tuesday to push the index back above the 7,100-point mark following seven consecutive losing sessions amid concerns over weakness in the domestic and global economy, dealers said.
Buying was seen almost across the board as investors scrambled to pick up bargains, but the gains were limited after the index briefly breached 7,200 points, they said. The weighted index closed up 90.92 points, or 1.28 percent, at 7,182.59, after moving between 7,131.15 and 7,206.35, on turnover of NT$68.08 billion (US$2.32 billion).
The market opened up 0.56 percent, and momentum accelerated to the end of the session with buying focusing on large-cap stocks in both the high-tech and old economy sectors, dealers said. Select market heavyweights, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and integrated circuit designer MediaTek Inc., underperformed the broader market, however, as investors locked in the gains they had built, dealers said. Smartphone vendor HTC also remained weak due to rising concerns over its sales, they added. "I prefer to say the latest gains were simply a technical rebound after the recent sell-off," Mega International Investment Service Corp. analyst Alex Huang said. "The local bourse remained in a down cycle amid lingering worries over economic fundamentals." Huang said that despite the rebound, turnover remained low as many investors stayed on the sidelines because there was little to suggest any turnaround in the economy in the near future. "Without a significant expansion in turnover, the market is unlikely to take off again any time soon," Huang said. In the high-tech sector, shares of flat panel makers made a comeback after Chimei Innolux Corp. reported a loss per share of NT$0.51 for the third quarter, an improvement from a loss per share of NT$1.35 recorded a quarter earlier. Chimei Innolux closed up 2.34 percent at NT$10.95, while rival AU Optronics Corp. gained 5.66 percent to end at NT$11.20. TSMC, the world's largest contract chip maker, bucked the upside of the broader market and fell 0.11 percent to close at NT$88.00. MediaTek ended down 1.37 percent at NT$325.00, while HTC closed down 7 percent, the maximum daily decline, at NT$204.50. Among the winning old economy stocks, Far Eastern New Century Corp. rose 1.50 percent to close at NT$30.50, and Huang Hsiang Construction Corp. gained 3.43 percent to end at NT$69.30. "After today's gains, it is possible that the local market will head south again due to weak market sentiment," Huang said. "I expect thin turnover in the local bourse will continue as many investors are waiting to see economic data released by Washington later this week, in particular the October jobless rate," he said. In Tuesday trading, the construction sector scored the highest gains among the eight major sectors of the market, finishing up 2 percent.
Textiles rose 1.6 percent, financials added 1.5 percent, and cement shares and machinery and electronics stocks closed up 1.3 percent. Plastics and chemicals rose 1.1 percent, food shares gained 0.7 percent, and the paper and pulp sector ended up 0.6 percent. (By Frances Huang)


Updated : 2021-07-29 01:55 GMT+08:00