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Taiwan stocks edge up despite worries of 520 spell

Taiwan stocks edge up despite worries of 520 spell

The weighted index on the Taiwan Stock Exchange opened flat on Monday and closed slightly higher by 11.45 points, or 0.13percent, to settle at 8,899.9 after moving between 8,877.46 and 8,912.35 on turnover amounted to NT$71.17 billion (US$2.36 billion). The analysts indicated that investors turned mostly cautious on the eve of the sixth anniversary of President Ma Ying-jeou’s inauguration, and the mood translated into a near flat line throughout Monday’s trading session.

Dealers at Dah Chang Securities said the market has been dominated by a wait-and-see atmosphere lately as the index in recent sessions has been relatively high, meaning that investors were reluctant to step onto the trading floor. The index fluctuated in a narrow margin, with relatively low transactions, the dealers added.

The index, however, is expected to climb slowly to breach the 9,000 mark, as buying for weighted electronics shares and financial stocks is warming up, dealers said.

MediaTek Inc. (2454), Taiwan’s leading chip supplier for Chinese smartphones, saw a nearly 2 percent drop in share prices after a Goldman Sachs’ report of an expected cut in subsidies for 3G handsets by China's top three mobile carriers could hurt the demand for MediaTek’s chips. For good performer, Largan Precision (3008) jumped 3.4 percent to NT$1,980 per share, boosting investor confidence in other high-priced electronic stocks, including Catcher Technology (2474) with a nearly 2 percent gain.

Foreign institutional investors (including mainland investors) purchased a net NT$ 2.45 billion, dealers bought a net NT$609 million, and securities investment trust companies bought a net NT$97 million. The net buying totaled NT$3.16 billion.

Updated : 2021-07-24 01:14 GMT+08:00