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Led by Hon Hai, Taiwan shares end higher

Led by Hon Hai, Taiwan shares end higher

Taipei, March 4 (CNA) Shares in Taiwan moved higher Wednesday as Hon Hai Precision Industry Co., (??) staged a technical rebound, helping the broader market recoup earlier losses to finish above the previous close, dealers said. Turnover remained thin as many investors sat out the session, waiting for the U.S. Federal Reserve's release of its Beige Book in which it offers an assessment of the state of the world's largest economy, they said. The weighted index on the Taiwan Stock Exchange closed up 15.96 points, or 0.16 percent, at 9,621.73, after moving between 9,580.78 and 9,635.18, on turnover of NT$84.23 billion (US$2.68 billion). The market opened down 0.11 percent and fell to the day's low in the wake of a pullback on Wall Street overnight from a fresh high.
But when the index fell below the 9,600 mark, bargain hunters turned active, seeking good buys like Hon Hai that had tumbled in recent sessions to push the index back into positive territory, dealers said. "Hon Hai has been lagging behind the electronics sector as well as the broader market. The buying showed that the stock was playing catch-up," Mega International Investment Services Corp. analyst Alex Huang said. Hon Hai rose 2.32 percent to close at NT$88.30, with 61.33 million shares changing hands, while the bellwether electronics sector ended up 0.20 percent. Dealers said Hon Hai's gains also reflected investor hopes that the Taiwanese company will team up with China's largest e-commerce operator Alibaba to develop a new business platform. "Thanks to the gains posted by Hon Hai shares, the local equity market left behind the latest losses on Wall Street," Huang said. "Despite Wednesday's upturn, Hon Hai's valuation remains relatively low as the company is expected to post earnings per share of more than NT$8 this year." Among the other gaining high-tech stocks, touch panel supplier TPK Holding Co. (??) added 0.92 percent to close at NT$220.00 after the company proposed to issue a cash dividend of NT$0.50, representing a payout ratio of 59 percent. Bucking the sector's upturn, smartphone camera lens maker Largan Precision Co. (???) fell 0.56 percent to end at NT$2,655.00. Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in Taiwan, closed unchanged at NT$150.50, taking a breather after recent strong gains. But optimism toward the contract chip maker remained intact. In the non-high-tech sector, food processor Uni-President Enterprises Corp. (??) gained 2.11 percent to close at NT$53.20, while Formosa Chemicals & Fibre Corp. (??) added 2.32 percent to end at NT$70.70. "The market is still moving in consolidation mode as investors are waiting to see what the Fed will say in the Beige Book, which could give clues on when the U.S. central bank will raise its key interest rates," Huang said. (By Frances Huang)


Updated : 2021-09-27 21:36 GMT+08:00