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Taiwan shares ends above 9,700 points

Taiwan shares ends above 9,700 points

Taipei, May 13 (CNA) Shares in Taiwan closed above the 9,700 point mark Wednesday as the bellwether electronics sector led the broader market to stage a technical rebound, dealers said. As investors ignored losses suffered by high-tech stocks on Wall Street overnight, they bought into Taiwanese semiconductor stocks, in particular integrated circuit designer MediaTek Inc. (???), which said a day earlier that smartphone markets in emerging economies have shown signs of stabilizing, the dealers said. The weighted index on the Taiwan Stock Exchange ended up 43.38 points, or 0.44 percent, at 9,724.11, after moving between 9,687.66 and 9,743.33 on turnover of NT$94.61 billion (US$3.08 billion). The market opened up 0.20 percent despite a 0.87 percent fall on the Philadelphia Semiconductor Index in the U.S. market overnight, and momentum continued, with buying accelerating in the local IC sector to maintain the strength until the end of the session, the dealers said. The local semiconductor sub-index closed up 1.24 percent and the electronics sub-index ended up 0.99 percent. "Thanks to the gains posted by MediaTek, the broader market overcame the technical resistance level ahead of 9,700 points as bargain hunters turned active throughout the session," Mega International Investment Services Corp. analyst Alex Huang said. MediaTek, which launched the world's first deca-core smartphone chip Tuesday, rose 7 percent, the maximum daily increase, to close at NT$397.50, with 15.16 million shares changing hands, after the IC designer said it remains upbeat about the global smartphone market outlook after a slow season in the second quarter. "MediaTek's comments boosted investor confidence in the semiconductor a lot so that they rushed to pick up bargains after the stock was hammered by a cautious second-quarter forecast," Huang said.
Inotera Memories Inc. (???), a DRAM supplier, also gained 7 percent to close at NT$34.80 on predictions that its advanced 20 nanometer process will give a boost to its bottom line starting from the third quarter. Bargain hunting spread to other segments in the electronics sector, with PC brand Asustek Inc. (??) up 1.33 percent to close at NT$304.50 and contract notebook computer maker Compal Electronics Inc. (??) up 2.37 percent to end at NT$25.90. In the non-high tech sector, food maker Uni-President Enterprises Corp. (??) added 1.73 percent to close at NT$53.00, while Nan Ya Plastics Corp. (??) lost 1.18 percent to end at NT$75.20. Taiwan Life Insurance Co. (???) rose 0.66 percent to close at NT$30.60 after it struck a deal in which CTBC Financial Holding Co. (???) will buy the life insurer for NT$32.35 billion through a stock swap. "After today's gains, the local bourse is faced with the nearest technical resistance level ahead of 9,800 points," Huang said. "Investors should remain cautious about the debt situation in Greece, which could move the global markets, including Taipei's." (By Frances Huang)


Updated : 2021-09-21 07:23 GMT+08:00