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Taiwan shares end up; Largan finishes above NT$3,000

Taiwan shares end up; Largan finishes above NT$3,000

Taipei, April 22 (CNA) Shares in Taiwan closed higher Wednesday with the help of the bellwether electronics sector, which staged a technical rebound on active bargain hunting after the tech-heavy Nasdaq posted gains overnight, dealers said. Largan Precision Co. (???), a leading smartphone camera lens supplier in Taiwan, closed above the NT$3,000 mark for the first time in its history amid growing optimism over the company's earnings prospects, they said. Buying in other high-tech heavyweights, such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???) and integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. (ASE, ???), further lifted the broader market before the close, dealers said. The weighted index on the Taiwan Stock Exchange closed up 79.02 points, or 0.82 percent, at 9,613.00, after moving between 9,549.61 and 9,630.79, on turnover of NT$102.39 billion (US$3.29 billion). The market opened up 0.23 percent as Largan shares extended their momentum from a session earlier, and buying in TSMC and other electronics blue chips vaulted the index past 9,600 points, dealers said. "Buying in Largan shares showed investor confidence in the company after its better-than-expected first quarter results," Mega International Investment Services Corp. analyst Alex Huang. Considered an important supplier of Apple Inc., Taichung-based Largan rose 4.07 percent to close at a historical high of NT$3,065.00, with 1.05 million shares changing hands. The buying came after the smartphone camera lens maker announced last week that it had a 56.7 percent gross margin for the January-March quarter, beating market expectations. The bullish sentiment toward Largan spread to other "Apple concept stocks." Metal casing maker Catcher Technology Co. (??) rose 6.76 percent to close at NT$379.00, and iPhone assembler Pegatron Corp. (??) rose 1.85 percent to end at NT$87.90. "Judging from Largan's first quarter results, investors have high hopes that other Apple concept stocks will follow suit to deliver satisfactory earnings reports for the three-month period," Huang said. Huang cautioned that after a strong showing in recent sessions, Largan shares could face strong technical resistance at around NT$3,100.00. Among other electronics stocks that gained ground, TSMC, the most heavily weighted stock in the local market, gained 0.70 percent to close at NT$143.50, and ASE rose 2.33 percent to end at NT$43.85. In the personal computer sector, Asustek Computer Inc. (??) rose 3.92 percent to close at NT$331.50, and Compal Electronics Inc. (??) gained 1.61 percent to end at NT$28.45. Quanta Computer Inc. (??) fell 0.26 percent to close at NT$77.00. "Despite today's gains, I expect that there is only a limited amount of room for the weighted index to go higher because the market could face strong technical hurdles ahead of 9,650-9,700 points," Huang said. "Investors here remained cautious with the earnings season still in progress on Wall Street, which could affect the U.S. market and send ripples through global markets," Huang said. (By Frances Huang)


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