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Local bourse lifted by rotational buying

Local bourse lifted by rotational buying

Taipei, Oct. 24 (CNA) Shares in Taiwan posted gains to close above 8,400 points Thursday as buying rotated to some old economy and financial heavyweights, helping the broader market recoup its earlier losses, dealers said. While certain large-cap electronics shares, in particular Taiwan Semiconductor Manufacturing Co. (TSMC), remained weak, some other high-priced high-tech stocks, such as smartphone vendor HTC Corp. and smartphone camera lens supplier Largan Precision Co., staged strong rebounds, the dealers said. The weighted index closed up 20.10 points, or 0.23 percent at the day's high of 8,413.72, off an early low of 8,346.52 on turnover of NT$69.69 billion (US$2.37 billion). The market opened down 0.35 and fell further to the day's low as investors took cues from an overnight fall on Wall Street, but as the index moved closer to 8,300 points, bargain-hunting emerged and rotated to various traditional industrial stocks, pushing the broader market back into positive territory, the dealers said. "Despite today's rebound, the local bourse fluctuated in a narrow range as turnover shrank," KGI Securities analyst Eason Lee said. "Many investors preferred to stay on the sidelines during the ongoing earnings season, waiting for corporate results." Among the old economy stocks that drew rotational buying, Formosa Taffeta Co. rose 3.24 percent to close at NT$36.65, while Nan Ya Plastics Corp. gained 1.52 percent to end at NT$66.60 as its two memory chip subsidiaries -- Nanya Technology Corp. and Inotera Memories Inc. -- reported improvement in their third-quarter results. DRAM chip supplier Nanya added 4.91 percent to close at NT$4.27 as its third-quarter net profit rose to NT$1.98 billion from NT$1.68 billion recorded a quarter earlier. Inotera, which reported NT$7.29 billion in net profit in the July-September period, up from NT$3.47 billion registered in the second quarter, ended up 1.60 percent at NT$19.00. Also in the semiconductor sector, TSMC, the most heavily weighted stock in the local market, extended losses from a session earlier, losing 0.90 percent to close at NT$110.00. On the back of bargain hunting, HTC rose 7 percent, the maximum daily increase, to NT$145.50, although the company denied media reports that China Mobile, the largest Chinese telecom operator, will take a stake in the Taiwanese company. Largan rose 2.34 percent to close at NT$1,005.00 on a technical rebound amid optimism that Apple Inc.'s new iPhones and iPads will boost the Taiwanese firm's shipments. In the financial sector, Cathay Financial Holding Co. rose 0.55 percent to close at NT$45.85, while Yuanta Financial Holding gained 1.91 percent to end at NT$16.00. "As the index closed above 8,400 points today, it could face stiff technical resistance. I expect the local bourse will continue to consolidate in the short term," Lee said. (By Frances Huang)


Updated : 2021-02-28 02:53 GMT+08:00