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Unable to sustain early gains, Taiwan shares end lower

Unable to sustain early gains, Taiwan shares end lower

Taipei, March 13 (CNA) Shares in Taiwan closed lower Friday after investors rushed to unload their holdings once the benchmark index rose above the 9,600-point mark early in the session, dealers said. While large-cap stocks in both electronics and non-high-tech sectors, including financials, faced downward pressure, select market heavyweights, such as Taiwan Semiconductor Manufacturing Co. (TSMC,???) and Hon Hai Precision Industry Co. (??), bucked the downturn to prevent a further tailspin, they said. The weighted index on the Taiwan Stock Exchange (TWSE) ended down 16.65 points, or 0.17 percent, at the day's low of 9,579.35, off an early high of 9,633.51, on turnover of NT$85.49 billion (US$2.71 billion). The market opened up 8.08 points and rose to the day's high as investors were encouraged by a technical rebound staged on Wall Street overnight. But selling emerged when the index breached 9,600 points and kept the market in negative territory until the end of the session, dealers said. "After the index vaulted past 9,600 points early, investors grew nervous about potentially strong technical resistance ahead of the recent high of around 9,699 points," Taishin Securities Investment Advisory Co. analyst Tony Huang said. On Feb. 25, the weighted index closed at 9,699.54 points, the high for the year so far. "It was no surprise that investors tended to push down share prices by pocketing earlier gains. They simply left a strong showing overnight on Wall Street behind," Huang said. The financial sector suffered a 1.12 percent decline on Friday, among the steepest of any major sector. Large-cap financial stocks, in particular, fell sharply as investors took advantage of these stocks' recent strong gains caused by an improvement in their bottom lines. Among them, Fubon Financial Holding Co. (???) lost 2.91 percent to close at NT$56.80 after a 6.36 percent rise in the previous four sessions, and Cathay Financial Holding Co. (???) dropped 1.54 percent to end at NT$48.00 after a 2.63 percent increase. In the electronics sector, smartphone camera lens supplier Largan Precision Co. (???) fell 0.56 percent to close at NT$2,670.00, and integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. (???) ended down 0.99 percent at NT$44.80. Contract notebook computer maker Compal Electronics Inc. (??) shed 1.48 percent to end at NT$26.60, and rival Quanta Computer Inc. (??) lost 1.91 percent to close at NT$77.00 after International Data Corp. lowered its forecast for global PC shipments for 2015. "Fortunately, TSMC and Hon Hai did well to move above the previous close in the session. Otherwise, the broader market would have fallen further," Huang said. TSMC, the largest contract chip maker in the world and the most heavily weighted stock in the local market, rose 0.68 percent to close at NT$149.00, and Hon Hai, which assembles iPhones and iPads for Apple Inc., gained 1.03 percent to end at NT$88.00. "Market sentiment remained cautious before a Fed policymaking meeting scheduled for March 17-18," Huang said. "Investors should keep a close eye on anything the Fed says about the economy to get some idea of when it might raise interest rates," Huang said. (By Frances Huang)


Updated : 2021-09-23 17:29 GMT+08:00