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Local bourse follows Wall Street to end lower

Local bourse follows Wall Street to end lower

Taipei, March 5 (CNA) Shares in Taiwan trended lower Thursday to close below the 9,600-point level as investors took cues from losses suffered on Wall Street overnight to cut their holdings in the local bourse, dealers said. Selling focused on select large-cap stocks in both the electronics and old economy sectors as investors continued to lock in gains they had built up in recent sessions by seizing the drop on Wall Street as a cause for selling, the dealers said. Sentiment appeared cautious, keeping turnover low, as many investors were awaiting the results of a policymaking meeting of the European Central Bank (ECB), which was expected to release details of the ECB's quantitative easing measures, they added. The weighted index on the Taiwan Stock Exchange closed down 26.64 points, or 0.27 percent, at 9,595.09, after moving between 9,564.44 and 9,631.04, on turnover of NT$84.48 billion (US$2.69 billion). The market opened up 5.11 points and rose to the day's high on follow-through buying, but selling set in as investors took into account the downturn on Wall Street and pressure persisted, pushing down the index to below 9,600 points at the end of the session, the dealers said. "After a recent strong showing by the bellwether electronics sector, in particular semiconductor stocks, many investors tended to hold back to some extent," Concord Securities analyst Kerry Huang said. "That's why the local equity market moved into the doldrums today." Among the weakening high-tech blue chips, Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, fell 0.33 percent to close at NT$150.00, and United Microelectronics Corp. (??) lost 0.63 percent to end at NT$15.65. Bucking the downturn on the broader market, Hon Hai Precision Industry Co., (??), which assembles iPhones and iPads for Apple Inc., rose 0.23 percent to close at NT$88.50 as the stock was one of the bargains that lagged behind the broader market. "Without the gains posted by Hon Hai -- one of the large-cap stocks in the local market -- the weighted index on the main board would have fallen further," Huang said. Huang said that selling in the electronics sector also spread to the old economy and financial sectors as many investors simply unloaded their holdings. In the non-high tech sector, Taiwan Cement Corp. (??) lost 1.38 percent to close at NT$43.00 and food maker Uni-President Enterprises Corp. (??) fell 1.69 percent to end at NT$52.30, while Fubon Financial Holding Co. (???) dropped 1.09 percent to close at NT$54.40 and Cathay Financial Holding Co. (???) ended down 0.63 percent at NT$47.15. "As the main board remained slow, some funds flowed to small-cap stocks on the over-the-counter market," Huang said. "The higher share price of Hermes Microvision Inc. (???) was evidence of this fund flow." Hermes closed up 5.71 percent at NT$1,760.00 after the semiconductor inspection tool and equipment supplier forecast Wednesday that its sales for 2015 will grow 25-35 percent from a year earlier. The index of the OTC market closed up 0.87 percent at 142.37 points. (By Frances Huang)


Updated : 2021-09-24 03:00 GMT+08:00