Alexa
  • Directory of Taiwan

Local bourse ends in consolidation mode

Local bourse ends in consolidation mode

Taipei, May 5 (CNA) Shares in Taiwan closed lower Tuesday after moving in consolidation mode amid cautious sentiment during ongoing sales reporting of listed companies, in particular firms in the bellwether electronics sector, dealers said. HTC Corp. (???), a Taiwan-based smartphone manufacturer, led the high-tech sector to trend lower after the company reported a more-than 30 percent month-on-month decline in sales for April, the dealers said. Several stocks in the petrochemical and textile sectors bucked the downturn on the broader market, which stopped the index from falling further and keeping the fluctuations in a narrow range throughout the session, they added. The weighted index on the Taiwan Stock Exchange closed down 24.91 points, or 0.25 percent, at 9,820.13, after moving between 9,788.13 and 9,855.64 on turnover of NT$91.16 billion (US$2.97 billion). The market opened up 4.09 points and moved to the day's high on follow-through buying from a session earlier, but selling set in due to rising concerns over the high-tech sector's sales in the second quarter after HTC reported the disappointing April revenue data, the dealers said. Corporate sales worries dragged down the broader market to below the 9,800 point mark at one point before some bargain hunters became active to pick up stocks, pushing up the index back to that level by the close, they said. "HTC's April sales report hurt investor sentiment," President Securities analyst Vickie Hsieh said. "Before all of the listed companies complete their sales announcements by May 10, caution is expected to continue to dominate the local equity market." HTC closed down 2.42 percent at NT$121.00 with 10.05 million shares changing hands after the company said Monday that it posted NT$13.5 billion in consolidated sales for April, down 33 percent from a month earlier and also down 39 percent from a year earlier. It was the lowest monthly revenue for April since the company reported sales of NT$11.4 billion in April 2009, leading to concern that HTC will not be able to achieve its second-quarter sales guidance figure. "The second quarter remains a slow season for the high-tech sector. After the release of HTC's poor sales report, many investors preferred to put their stock-buying plans on hold for the moment," Hsieh said. Among other falling electronics heavyweights, Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, fell 0.34 percent to close at NT$147.00, integrated circuit designer MediaTek Inc. (???) shed 1.45 percent to end at NT$374.50 and PC vendor Asustek Computer Inc. (??) closed down 1.82 percent at NT$323.50. In the old economy sector, Formosa Plastics Corp. (??) gained 0.50 percent to end at NT$80.30, Nan Ya Plastics Corp. (??) rose 0.39 percent to close at NT$76.80, and textile maker Makalot Industrial Co.(??) ended up 2.49 percent at NT$246.50. (By Frances Huang)


Updated : 2021-09-27 12:40 GMT+08:00