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Taiwan shares edge lower; index stays above 8,600 points

Taiwan shares edge lower; index stays above 8,600 points

Taipei, Dec. 31 (CNA) Shares in Taiwan retreated Tuesday as investors pocketed gains posted a session earlier, but the market's benchmark index remained above the 8,600-point mark that was breached for the first time in over two years on Monday, dealers said. The bellwether electronics sector came under downward pressure as investors cut their holdings in select high-tech heavyweights, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and smartphone camera lens supplier Largan Precision Co., they said. The auto sector outperformed the broader market after Yulon Group Chairman Kenneth Yen on Monday offered an optimistic forecast for car sales in Taiwan in 2014, they added. The weighted index closed down 11.92 points, or 0.13 percent, at 8,611.51, after moving between 8,593.75 and 8,647.24 on turnover of NT$84.47 billion (US$2.82 billion). For the year, the main board rose 11.8 percent. On Tuesday, the market opened up 0.15 percent and rose to the day's high on follow-through buying, but selling immediately followed to drag the index into negative territory by the end of the session, dealers said. "After the weighted index pushed above 8,600 points yesterday to close at a more than two-year high, the market faced stiff technical resistance. It was not surprising that share prices encountered some selling today," Mega International Investment Services Corp. analyst Alex Huang said. "But the market remained resilient as it has become technically healthier after solid buying in recent sessions," Huang said, referring to the fact that the index managed to close above the 8,600-point level for the second consecutive day. Huang said the electronics sector fell into consolidation mode as investors locked in their recent gains and focused their selling on large-cap stocks. "As these heavyweights turned weaker, the broader market suffered," he said. TSMC, the most heavily weighted stock in the local market, lost 0.47 percent to close at NT$105.50 after a 1.44 percent increase recorded Monday, while Largan fell 1.22 percent to end at NT$1,215.00 after the stock hit a record high of NT$1,230.00 a day earlier. Integrated circuit designer MediaTek Inc. dropped 0.22 percent to close at NT$443.50, while Hon Hai Precision Industry Co., the world's largest contract electronics maker, fell 0.25 percent to end at NT$80.10. Selling also spread to the old economy sector, with the food sub-index closing down 0.79 percent and the plastics sector ending 0.45 percent lower, dealers said. Food product supplier Uni-President Enterprises Corp. fell 1.65 percent to close at NT$53.70, and Nan Ya Plastics Corp. dropped 0.86 percent to end at NT$68.90. Bucking the downside on the broader market, the auto sub-index rose 0.49 percent on hopes that car sales in Taiwan for 2014 will hit 400,000 units, up from 379,000 units estimated for 2013. Hotai Motor Co., a local sales agent for Japan's Toyota Motor Corp., rose 2.20 percent to close at NT$368.00 and Yulon Motor Co., the flagship entity of the Yulon Group, added 0.75 percent to end at NT$54.00. Huang said the market could consolidate for some time to digest downward pressure between 8,600 points and 8,650 points. "After the technical resistance is overcome, the index is likely to challenge 8,800 points before the market closes on Jan. 28 for the Lunar New Year holiday," he said. Trading will resume on Feb. 5 after the holiday concludes. (By Frances Huang)


Updated : 2021-03-08 11:41 GMT+08:00