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Local bourse stages mild rebound; financials boosted by earnings

Local bourse stages mild rebound; financials boosted by earnings

Taipei, Oct. 9 (CNA) Shares in Taiwan staged a mild technical rebound Thursday from the heavy losses seen a session earlier as concerns over further institutional selling offset the effects of an overnight rally on Wall Street, dealers said. The financial sector served as an anchor to stabilize the broader market on the back of strong bottom lines among the major financial holding companies, while the bellwether electronics sector remained slow, which prevented the index from moving higher, the dealers said. The weighted index on the Taiwan Stock Exchange closed up 11.26 points, or 0.12 percent, at 8,966.44, after moving between 8,946.16 and 9,054.67 on turnover of NT$82.94 billion (US$2.73 billion). The market opened up 0.74 percent and rose to the day's high as investors were encouraged by the strong rebound on Wall Street to buy, the dealers said. The earlier buying in the local bourse was triggered by hopes that the U.S. Federal Reserve will keep interest rates low for some time due to its concerns over the global economy as cited in the minutes of a meeting held in September, they said. However, after the index briefly breached the nearest technical resistance level of the 20-day moving average of 9,050 points, some investors locked in their earlier gains to keep the local bourse below 9,000 points at the close, they added. "After recent massive foreign institutional selling in the local equity market, fears escalated that foreign investors will continue to cut their holdings," Concord Securities analyst Kerry Huang said. "For the moment, the willingness to chase prices was low." Huang said that the electronics sector was the target of many investors who took profits during the session. The electronics sub-index closed down 0.04 percent. Among the falling high-tech stocks, integrated circuit designer MediaTek Inc. shed 5.19 percent to close at NT$420.00 amid worries over rising competition from its Chinese rivals and slow-season effects in the fourth quarter. Smartphone camera lens supplier Largan Precision Co. closed unchanged at NT$2,275.00 off an early high of NT$2,360.00, while metal casing maker Catcher Technology Co. also ended flat at NT$278.00 off an early high of NT$284.00. "Fortunately, Taiwan Semiconductor Manufacturing Co. (TSMC) moved up as investors hoped that the contract chip maker will report strong sales data for the third quarter. The stock lent some support to the high-tech sector," Huang said. TSMC, the most heavily weighted stock in the local market, rose 2.04 percent to close at NT$125.00, while IC packaging and testing services provider Advanced Semiconductor Engineering Inc. added 0.54 percent to end at NT$37.30 on the back of a record sales high for the third quarter. "In addition, buying in financial stocks appeared stronger today as investors were impressed by several major financial holding companies' earnings. The gains also kept the broader market from closing lower," Huang said. Fubon Financial Holding Co. rose 2.81 percent to close at NT$49.35 after the company posted NT$5.23 in earnings per share (EPS) for the first nine months of this year, up from NT$2.76 in EPS recorded a year earlier. Cathay Financial Holding Co. gained 1.01 percent to end at NT$50.00 after the company registered NT$3.72 in EPS during the same period, up from NT$2.32 in EPS seen a year earlier. (By Frances Huang)


Updated : 2021-05-06 15:26 GMT+08:00