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Taiwan shares up in morning trading

Taiwan shares up in morning trading

Taipei, Feb. 24 (CNA) Shares in Taiwan rose Tuesday morning in the first trading session after the Lunar New Year holiday, with interest in large-cap stocks pushing the weighted index above the 9,600-point mark, dealers said. Foreign institutional investors were believed to be making buys in the spot market to force prices higher and boost the value of the long position contracts they currently hold in the futures market, the dealers said. As of 10:56 a.m., the weighted index on the Taiwan Stock Exchange (TWSE) had added 1.03 percent to 9,627.28 on turnover of NT$57.49 billion (US$1.82 billion). The market opened higher as investors followed the lead of 1-2 percent gains posted on Wall Street and European markets during the Lunar New Year holiday from Feb. 18 to Feb. 23, and the momentum was sustained into the morning, dealers said. Among the gaining market heavyweights, Taiwan Semiconductor Manufacturing Co. (TSMC, ???) had risen 2.36 percent to NT$152.00, with 40.71 million shares changing hands. Because TSMC is the most heavily weighted stock in the local market, its gains helped drive the broader market higher, dealers said. Led by Apple Inc.'s record high share price achieved overnight, Taiwanese suppliers of the U.S. electronics giant also gave the overall market a boost. Smartphone camera lens maker Largan Precision Co. (???) was up 2.03 percent at NT$2,760.00, and iPhone assembler Pegatron Corp. (??) was up 2.71 percent at 87.10. "Judging from the current turnover, I think that foreign institutional investors are extending their buying in the local bourse, just as they were doing before the Lunar New Year holiday," Ta Ching Securities analyst Andy Hsu said. According to the TWSE, foreign institutional investors bought a net NT$62.1 billion in shares during the 10 sessions leading up to the Lunar New Year holiday. Dealers said European investors were the major buyers in recent sessions after the European Central Bank announced in late January it would launch a quantitative easing program in March. "It is possible that today's turnover will range between NT$100 billion and NT$110 billion on the back of strong foreign buying since foreign institutional investors hold 14,000 more long than short contracts in the futures market," Hsu said. Buying also spread to select old economy stocks, dealers said. Among them, Formosa Plastics Corp. (??) had gained 0.91 percent to NT$77.40, and Nan Ya Plastics Corp. (??) had added 1.47 percent to NT$69.10. Hsu said that because the weighted index successfully topped an inter-day high of 9,593 seen in July 2014, the local bourse has become technically healthier. "Foreign investors are still targeting electronics blue chips for the moment," Hsu said. "As long as foreign institutional buying continues, I do not rule out the possibility that the weighted index will head toward 9,800 points in the short term." (By Frances Huang)


Updated : 2021-09-20 19:08 GMT+08:00