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Taiwan shares ends higher as non-high-tech stocks gain

Taiwan shares ends higher as non-high-tech stocks gain

Taipei, May 12 (CNA) Shares in Taiwan closed higher Tuesday as buying rotated to old economy and financial stocks to offset losses incurred by the bellwether electronics sector, dealers said. Still, the broader market remained in consolidation mode as many investors stayed on the sidelines amid concerns over the debt problems in Greece after the latest talks by European finance ministers on the debt-ridden country failed to yield conclusive results, they said. The weighted index on the Taiwan Stock Exchange closed up 17.01 points, or 0.17 percent, at 9,680.73, after moving between 9,637.21 and 9,702.67 on turnover of NT$87.60 billion (US$2.85 billion). The market opened down 0.22 percent in reaction to a falling Wall Street overnight as global market sentiment remained overshadowed by the financial difficulties faced by Greece, dealers said. The local market soon staged a rebound to help the index breach the 9,700-point mark at one point, but selling soon followed, and local share prices moved in a narrow range for the rest of the session, they said. "Investors here fear that Wall Street and other global equity markets will suffer volatility down the road as there are no signs of any immediate solution to Greece's debt problems," President Securities analyst Vickie Hsieh said. "That's why turnover remained low. Many investors stepped back from the trading floor and simply watched, deciding not to make any trades at this time," the analyst said. Hsieh said rotational buying lifted old economy and financial stocks as investors intentionally shunned high-tech stocks at a time when the electronics sector has had trouble shedding the effects of its traditionally slow first quarter. The financial sector closed up 0.69 percent, with Cathay Financial Holding Co. (???) up 1.10 percent to end at NT$55.10 and Mega Financial Holding Co. up 1.30 percent to close at NT$27.25. "The local financial sector has sound fundamentals. I think that foreign institutional investors have shifted their attention from electronics to financial stocks," Hsieh said. The 15 financial holding companies listed on the main board or the over-the-counter market reported a total of more than NT$100 billion in net profit for the first four months of the year, up from about NT$88.7 billion in net profit over the same period of last year. In the old economy sector, food maker Uni-President Enterprises Corp. (??) gained 4.20 percent to close at NT$52.10 after subsidiary Uni-President China Holdings Ltd. reported a 55.27 percent year-on-year increase in net profit for the first quarter. The electronics sector continued in the doldrums because of concerns over slow season effects, with the sub-index falling 0.41 percent. Contract notebook computer maker Compal Electronics Inc. (??) fell by the maximum daily decline of 7 percent to close at NT$25.30 after the company lowered its forecast for notebook computer shipments in the second quarter to 10-15 percent sequential growth, down from a previous estimate of a 15-20 percent growth. Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, closed down 0.67 percent at NT$147.50. (By Frances Huang)


Updated : 2021-09-22 03:40 GMT+08:00