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Local bourse gains on ample liquidity

Local bourse gains on ample liquidity

Taipei, Jan. 22 (CNA) Shares on the Taiwan Stock Exchange staged a rebound Tuesday on liquidity-driven buying, but turnover remained thin as many investors preferred to stay on the sidelines ahead of release earnings on Wall Street by high-tech giants such as Apple Inc. and Microsoft Corp., dealers said. Select large-cap electronics stocks, including smartphone vendor HTC Corp., attracted market attention on relatively low valuations, while certain shares in the traditional industrial sector posted gains on hopes that domestic demand in China will accelerate, they said. The weighted index closed up closed up 34.18 points, or 0.44 percent, at 7,759.10, after moving between 7699.25 and 7,759.47, on turnover of NT$59.26 billion (US$2.04 billion). The market opened up 0.28 percent and then selling emerged to drag down the index before bargain hunters turned active to pick up stocks in both the high-tech and old economy sectors, the dealers said. However, as the index moved closer to the nearest technical resistance level at around 7,800 points, the gains were capped at the end of the session, they said. "Market sentiment remained cautious before U.S. high tech firms, in particular Apple, announce their quarterly results later this week," Horizon Securities analyst Benson Huang said. "Many investors appeared nervous about global demand and are tending to hold their breath before the high-tech giants give their guidance about their sales and earnings outlooks," Huang said. "They were not willing to push share prices further higher today." HTC rose 1.05 percent to close at NT$289.50 after foreign wire services reported that the smartphone vendor will soon ship its Butterfly model to India and Russia. Among other winning high-tech stocks, Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, gained 0.50 percent to close at NT$101.00, while Hon Hai Precision Industry Co., which assembles iPhones and iPads for Apple, added 0.95 percent to end at NT$85.40. "I would like to say the gains posted by these high-tech stocks were largely technical. Investors had better trade them with caution as a rising Taiwan dollar has posted a threat to their bottom lines," Huang said. In the financial sector, China Life Insurance gained 1.81 percent to close at NT$28.10 after the company recorded a record high net profit for 2012, while Fubon Financial Holding rose 1.51 percent to end at NT$36.95. Among the rising old economy stocks, which have close business ties with China, food maker Uni-President Enterprises Corp. gained 1.74 percent to close at NT$52.70, and retailer Ruentex Industries Ltd. added 0.93 percent to end at NT$76.00. Huang said the local bourse has entered a consolidation mode after a rally at the end of the previous week, adding: "Without turnover expanding to NT$80 billion or higher, it is hard for the market to jump over technical hurdles ahead of 7,800 points." The foodstuff sector scored the highest gains among the eight major sectors of the market, finishing up 1.0 percent. Financials rose 0.7 percent, while the machinery and electronics, and textile sectors closed up 0.6 percent. Paper and pulp stocks added 0.4 percent, cement shares gained 0.3 percent, and plastics and chemicals rose 0.2 percent, while the construction sector ended down 0.4 percent. (By Frances Huang)


Updated : 2021-07-27 03:22 GMT+08:00