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Taiwan shares end above 9,700 points, led by large-cap stocks

Taiwan shares end above 9,700 points, led by large-cap stocks

Taipei, May 19 (CNA) Shares in Taiwan moved higher to close above the 9,700-point mark Tuesday as buying was triggered by a record high on Wall Street to lift large-cap stocks in both the electronics and financial sectors, dealers said. Bargain hunters rushed to pick up stocks in the financial sector, which had been in consolidation mode in recent sessions, while the high-tech sector benefited from gains posted by heavyweights such as Largan Precision Co. (???) and Hon Hai Precision Industry Co. (??), the dealers said. The weighted index on the Taiwan Stock Exchange (TWSE) ended up 110.67 points, or 1.15 percent, at 9,716.77, after moving between 9,623.95 and 9,722.80 on turnover of NT$106.89 billion (US$3.50 billion). The market opened up 0.33 percent in a knee-jerk reaction to a higher Wall Street, where the Dow Jones Industrial Average and the Standard & Poor's 500 Index hit fresh highs overnight, the dealers said. Buying focused on financial stocks, which had been hammered by concerns over their overseas investments due to volatility in the U.S. and European bond markets, they said. Interest in the high-tech sector accelerated, in particular in select manufacturers for Apple Inc., including Largan, to push the broader market even higher, they added. "I think foreign institutional investors served as the major buyers on the local main board today," President Securities analyst Vickie Hsieh said. "After local shares had consolidated for some time, foreign investors simply seized the current relatively low valuations as a reason to buy," Hsieh said. According to the TWSE, foreign institutional investors bought a net NT$9.78 billion-worth of local shares on the main board Tuesday after a net buy of NT$9.13 billion a session earlier. Largan, a smartphone camera lens supplier for Apple, gained 6.23 percent to close at NT$3,325.00, the highest ever in the stock's history, after several foreign brokerages raised their target prices on the stock. Dealers said that Largan is expected to continue to take advantage of its lead over its peers to secure more orders. Also, as an Apple concept stock, Hon Hai, the world's largest contract electronics maker, added 1.65 percent to end at NT$98.40. Dealers said that Hon Hai shares could encounter technical resistance ahead of NT$100 soon. Flat panel maker AU Optronics Corp. (??) added 5.21 percent to close at NT$16.15, while Taiwan Semiconductor Manufacturing Co. (???) ended unchanged at NT$146.50. The electronics sub-index closed up 1.19 percent and the financial sector ended up 1.66 percent. In the financial sector, Fubon Financial Holding Co. (???) rose 3.38 percent to close at NT$65.00 and Cathay Financial Holding Co. (???) gained 2.60 percent to end at NT$55.30. "The latest gains have made the local market technically healthier but the nearest technical hurdles are expected to appear soon at around the 60-day moving average of 9,750 points," Hsieh said. "With the index moving closer to that level, the market could need some time for consolidation before making another breakthrough," she said. (By Frances Huang)


Updated : 2021-09-20 06:56 GMT+08:00