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Local bourse ends flat on consolidation

Local bourse ends flat on consolidation

Taipei, March 3 (CNA) Shares in Taiwan closed little changed Tuesday as the local equity market fell into consolidation mode after a strong showing recently, dealers said. Buying late in the trading session focusing on select large-cap stocks in the semiconductor, petrochemical and financial sectors helped pull the broad market out of negative territory, they said. The weighted index on the Taiwan Stock Exchange ended up 4.41 points, or 0.04 percent, at 9,605.77, after moving between 9,571.64 and 9,642.95, on turnover of NT$84.35 billion (US$2.69 billion). The market opened up 0.32 percent and rose to the day's high as investors followed the lead of the strong showing overnight on Wall Street, where the Dow Jones Industrial Average and S&P 500 index hit fresh historical highs, dealers said. As the Taiex moved closer to 9,700 points, selling set in to drag the market into negative territory before last-ditch buying emerged to help the bourse close slightly higher than the previous day, they said. "After recent strong gains, the local bourse has been moving in consolidation mode," President Securities analyst Vickie Hsieh said. "Judging from the relatively low turnover, I think many investors preferred to stay on the sidelines because of worries of a possible pullback." The Taiex rose 3.38 percent in the first two months of the year. Hsieh said the cautious sentiment led many investors to ignore the surge on Wall Street driven by a four-month high in U.S. manufacturing activity reported Monday. "The local market managed to close above yesterday's closing level thanks to select large-cap stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC, ???)," Hsieh said. TSMC, the most heavily weighted stock in the local market, rose 1.01 percent to close at NT$150.50, with 29.17 million shares changing hands, on continued optimism toward the contract chip maker's global competitiveness. In the dynamic random access memory chip sector, Nanya Technology Corp. (???) gained 1.53 percent to end at NT$79.50, and Inotera Memories Inc. (???) added 0.33 percent to close at NT$46.05 on a technical rebound after the stocks had suffered from falling product prices. Smartphone vendor HTC Corp. (???), however, fell 3.02 percent to end at NT$144.50 after the company reported that its consolidated sales for February tumbled 25.2 percent from a month earlier to NT$9.2 billion. In the financial sector, Mega Financial Holding Co. (???) gained 1.22 percent to close at NT$24.80, and Cathay Financial Holding Co. (???) rose 0.21 percent to end at NT$47.60. Among the gaining old economy stocks, Eclat Textile Co. (??) rose 6.81 percent to close at NT$384.50, and Nan Ya Plastics Corp. (??) added 0.44 percent to end at NT$68.50. "After reviewing today's trading activity, I think the market's nearest technical support is at around 9,550 points," Hsieh said. "That's why the bourse was able to recover its earlier losses, indicating that the local market remains technically sound." (By Frances Huang)


Updated : 2021-09-29 00:28 GMT+08:00