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Local bourse ends in consolidation

Local bourse ends in consolidation

Taipei, Dec. 30 (CNA) Shares in Taiwan closed in consolidation mode Tuesday as investors became reluctant to chase prices even as the index broke the 9,300 point mark, eventually eroding gains by the end of the session and pushing the index back down, dealers said. The bellwether electronics sector pulled back as investors locked in gains they built a session earlier with large-cap stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC), while select old economy stocks attracted bargain hunting to outperform the broader market, they said. The weighted index on the Taiwan Stock Exchange ended down 17.85 points, or 0.19 percent, at 9,268.43 , after moving between 9,262.70 and 9,338.06, on turnover of NT$71.24 billion (US$2.25 billion). The market opened up 0.14 percent and rose to the day's high on follow-through buying from a session earlier and breached 9,300 points, but some investors shifted to the sell side to push down the bourse to the red at the close, dealers said. "After gaining in the previous few sessions, the local bourse took a pause today," Mega International Investment Services Corp. analyst Alex Huang said. Before Tuesday, the Taipei equity market gained about 1.40 percent in the previous three sessions and had added 5.19 percent since Dec. 17. "There is heavy technical resistance at around 9,350 points. So after the index breached 9,300 points at one point, it was no surprise that selling set in as many investors preferred to lock in their gains for the moment," Huang said. Huang said that electronics stocks, in particular high-tech heavyweights, suffered relatively strong selling during the session, with the electronics sub-index down 0.17 percent at the close. Among the losing electronics stocks, TSMC, the most heavily weighted stock in the local market, lost 0.71 percent to close at NT$140.00, and PC vendor Asustek Computer Inc. lost 0.72 percent to end at NT$343.00. Bucking the downturn in the broader market, memory chip makers Winbond Electronics Co. gained 2.83 percent to close at NT$10.90, and Nanya Technology Co. rose 4.36 percent to end at NT$81.40 amid optimism toward global demand for 2015, dealers said. "Despite today's retreat, it is unlikely for the electronics sector to suffer a major pullback any time soon as many international brands are scheduled to launch new devices soon to boost shipments," Huang said. In the old economy sector, Evergreen Marine Corp. rose 1.61 percent to close at NT$22.05, and Yang Ming Transport Corp. added 3.40 percent to end at NT$16.75, both on hopes that their bottom lines would be strengthened by plunging fuel costs. "As the electronics sector turned stagnant today, buying rotated to old economy stocks which lagged behind high-tech stocks," Huang said. Huang said that ahead of a return of foreign institutional investors after New Year's Day, the local bourse is likely to continue to move in a narrow range Wednesday, the last trading session of 2014. (By Frances Huang)


Updated : 2021-06-20 09:26 GMT+08:00