Alexa
  • Directory of Taiwan

Local bourse stages technical rebound but turnover shrinks

Local bourse stages technical rebound but turnover shrinks

Taipei March 21 (CNA) Shares in Taiwan staged a technical rebound from the losses in the previous session, ending above the 7,800-point mark Thursday, but thin turnover prevented the index from gaining significantly by the end of trade, dealers said. Electronics heavyweights such as Taiwan Semiconductor Manufacturing Co. (TSMC) and smartphone vendor HTC Corp. extended their losses from a day earlier, while select old economy shares, in particular construction stocks and "China concept stocks," helped stabilize the broader market, dealers said. The weighted index closed up 13.81 points, or 0.17 percent at 7,811.84, after profit taking erased part of the earlier gains, on turnover of NT$68.21 billion (US$2.29 billion). The market opened up 0.40 percent and rose to the day's high of 7,843.16 as investors took cues from a rising Wall Street overnight amid eased concerns over the financial crisis in Cyprus and reduced fears that the U.S. Federal Reserve will scale back its liquidity easing efforts, dealers said. However, after the index breached 7,800 points, the market encountered strong technical resistance and capped the upside by the close of the session, they said. "Turnover was thin, making it unlikely for the market to rebound strongly today," Concord Securities analyst Kerry Huang said. Thursday's turnover fell from NT$74.48 billion the previous day. "Unless turnover expands to NT$80 billion or more, the technical hurdles ahead of 7,900 points will remain hard to overcome," Huang said. Huang said a lackluster electronics sector was behind the limited gains on the broader market, with TSMC, the world's largest contract chip maker, failing to make a comeback from Wednesday's 1.2 percent decline. "Many investors were still concerned about TSMC's sales for the second quarter amid stiff competition from its rivals," Huang said. "At the moment, many investors prefer to stay alert regarding TSMC shares until the company gives its second quarter sales guidance in April." TSMC fell 0.10 percent to close at NT$98.70 after dropping below the NT$100.00 mark the previous day, while HTC shed 3.04 percent to end at NT$239.00 amid lingering concerns that a possible component shortage would affect its shipments. However, the old economy stocks outperformed the broader market as investors took advantage of the stocks' relatively low valuations, Huang said. The construction sector ended 1.29 percent higher, as major property developers prepare to launch residential projects at the end of the month in a bid to stir up buying interest, the analyst said. Hung Poo Real Estate Development Co. gained 5.81 percent to close at NT$31.85, and Run Long Construction Co. rose 3.86 percent to end at NT$36.30. Among the firms that have close business ties with China, bicycle supplier Giant Manufacturing Co. added 1.22 percent to close at NT$166.00 and rival Merida Industry Co. gained 5.36 percent to end at NT$177.00 on hopes of strong sales growth in the mainland market. (By Frances Huang)


Updated : 2021-05-12 00:55 GMT+08:00