Alexa
  • Directory of Taiwan

Taiwan shares rebound to end above 9,200 points

Taiwan shares rebound to end above 9,200 points

Taipei, June 18 (CNA) Shares in Taiwan staged a rebound Thursday to close above the 9,200 point mark as investors took hints from gains posted on Wall Street overnight after the U.S. Federal Reserve appeared dovish over a move to raise interest rates, dealers said. The bellwether electronics sector continued an uptrend, with buying rotating to personal computer company stocks, while other large-cap stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC, ???), remained slow throughout the trading session, the dealers said. The shipping sector attracted bargain hunters with the approach of the peak third quarter, while solar energy stocks moved higher after a research report said that prices of high efficiency multi-silicon solar cells have been recovering, they added. However, trading volume remained thin as many investors were reluctant to chase prices amid lingering concerns over the debt problems in Greece, the dealers said. The weighted index on the Taiwan Stock Exchange closed up 28.54 points, or 0.31 percent, at 9,218.37, after moving between 9,187.87 and 9,243.84, on turnover of NT$81.54 billion (US$2.63 billion). The market opened up 5.82 points and rose to the day's high in the wake of a higher Wall Street overnight after the U.S. Fed concluded a two-day policymaking meeting in which it was decided to keep its interest rates low, the dealers said. But some investors pocketed their earlier gains amid concerns over the debt situation in the eurozone to cap the upturn at the close, they said. "After the Fed meeting, many investors around the world tended to think the U.S. central bank will raise its interest rates in a gradual manner," Concord Securities analyst Kerry Huang said. "It was no surprise that Wall Street and the Taipei market staged a rebound." In a news conference after the meeting, Fed Chair Janet Yellen said she wanted the market to focus on the pace and trajectory of rate hikes, saying that the timing of the initial hike is less important. The remarks have prompted investors to think that the Fed will raise interest rates gradually. The bellwether electronics closed up 0.43 percent, while TSMC, the most heavily weighted stock in the local market, fell 0.35 percent to end at NT$142.00 and integrated circuit designer MediaTek Inc. (???) lost 0.47 percent to close at NT$422.50. Among the rebounding PC stocks, Asustek Computer Inc. (??) rose 1.76 percent to end at NT$289.50 and Inventec Corp. (???) added 3.16 percent to close at NT$21.20. In the shipping sector, Evergreen Marine Corp. (????) rose 7.77 percent to end at NT$15.95 and rival Yang Ming Marine Transport Corp. (??) gained 4.31 percent to close at NT$10.90. Investors have high hopes that rising demand in the third quarter will push up shipping fares. After Neo Solar Power Corp. (???) gave an upbeat forecast about the July-September period a day earlier, solar energy stocks generally moved higher Thursday. Neo Solar rose 3.85 percent to end at NT$24.25, and Motech Industries Inc. (??) added 5.35 percent to close at NT$36.40. "Despite today's rebound, market sentiment remained cautious as many investors are watching closely a finance minister meeting in the eurozone scheduled for later in the day," Huang said. "Before a meaningful solution to the Greece debt is hammered out, a breakthrough in the equity market is unlikely." (By Frances Huang)


Updated : 2021-09-19 20:26 GMT+08:00