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Local bourse gains on futures-driven buying

Local bourse gains on futures-driven buying

Taipei, Jan. 21 (CNA) Shares in Taiwan closed up Wednesday above 9,300 points as foreign institutional investors bought in the spot market in a bid to make profits in the futures market, dealers said. To boost the weighted index of the spot market, foreign investors rushed to pick up large-cap stocks in both high-tech and old economy sectors, with Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock in the local market, leading the upturn, they said. The weighted index on the Taiwan Stock Exchange (TWSE) ended up 68.02 points, or 0.73 percent, at the day's high of 9,319.71, off an early low of 9,275.68, on turnover of NT$96.70 billion (US$3.06 billion). The market opened up 0.44 percent on follow-through buying from a session earlier, and momentum continued as investors rushed to buy into heavyweights to push up the index to the highest level of the day at the end of the session, dealers said. It was the first time the market closed above the 9,300 mark since Dec. 31, when the index ended at 9,307.26 points. "Judging from the gains posted by TSMC and other large-cap stocks, I think that buying largely came from foreign institutional investors who held a net of more than 10,000 long position contracts in the futures market Tuesday," Mega International Investment Services Corp. analyst Alex Huang said. "TSMC was a driver to boost the broader market today," Huang said. According to the TWSE, foreign institutional investors continued to stand on the buy side, serving as net buyers of NT$17.22 billion worth of local shares Wednesday after a net buy of NT$8.57 billion recorded Tuesday. Among the gaining blue chips, TSMC, the world's largest contract chip maker, gained 2.17 percent to close at NT$141.00 with 70.53 million shares changing hands. That led the semiconductor sub-index to end up 1.39 percent and the bellwether electronics sector to close up 0.70 percent. "A strong showing by TSMC also reflected a 2.17 percent rise in the company's American depositary receipts in the U.S. market overnight. Many investors remained impressed by TSMC's rosy forecast for 2015," Huang said. Last week, TSMC said in an investor conference that its sales for the first quarter, a traditionally slow season for the IC sector, could stay little changed from the record-breaking fourth quarter, when consolidated revenue hit a new high of NT$222.52 billion. On top of that, the chip maker expects sales for the remaining three quarters to outpace the first quarter. Among other IC stocks, Advanced Semiconductor Engineering Inc. (???), the world's largest IC packaging and testing services provider, added 2.64 percent to close at NT$38.95, and rival Siliconware Precision Industries Co. (??) rose 2.18 percent to end at NT$49.20. In the old economy sector, food maker Uni-President Enterprises Corp. (??) rose 2.20 percent to close at NT$51.00, and Eclat Textile Co. (??) added 7 percent, the maximum daily increase, to end at NT$349.50. "Investors should watch closely the upcoming policymaking session of the European Central Bank (on Thursday) for how the bank will ease its monetary policy to boost the economy in the eurozone, which could move the global markets," Huang said. (By Frances Huang)


Updated : 2021-09-24 08:57 GMT+08:00