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Taiwan shares extend gains on optimism over Greece

Taiwan shares extend gains on optimism over Greece

Taipei, June 23 (CNA) Shares in Taiwan extended their momentum from a session earlier and moved higher Tuesday as investors embraced high hopes that Greece and its creditors will hammer out a package to solve the European country's debt problems, dealers said.
The bellwether electronics sector, led by Taiwan Semiconductor Manufacturing Co. (TSMC) and smartphone camera lens supplier Largan Precision Co., trended lower, along with bargain-hunting that put the financial sector under the spotlight, the dealers said.
The weighted index on the Taiwan Stock Exchange closed up 49.37 points, or 0.52 percent, at 9,391.14, after moving between 9,375.78 and 9,438.39, on turnover of NT$99.73 billion (US$3.23 billion).
The market opened up 0.36 percent in a knee-jerk reaction to a higher Wall Street overnight amid reduced concerns over the debt situation in the eurozone after Greece offered an economic reform proposal to its creditors that seemed to be acceptable, the dealers said.
Momentum in the local equity market accelerated, with buying focusing on high-tech and financial stocks, but with the index breaching the 9,400 point mark, some investors locked in their earlier gains to cap the upturn at the close, they said.
"Buying on Wall Street and in Europe overnight signaled optimism toward Greece's debt problems. It seemed that many investors were upbeat that Greece will break the deadlock in its negotiations," Marbo Securities Investment Consulting Co. analyst Chang Chih-cheng said.
"Taiwan also moved in line with the financial markets Tuesday, extending its momentum from a session earlier, while it faced technical resistance at around 9,400 points," Chang said, referring to the high technical hurdles at the 20-day moving average of 9,416 points.
"I think that the local market needs higher turnover to help it conquer the technical difficulties," he said.
Tuesday's buying was concentrated on high-tech and financial stocks, Chang said. The electronics sector closed up 0.66 percent and the financial sub-index ended up 1.01 percent.
"Thanks to high-tech heavyweights such as TSMC and Largan, the bellwether electronics sector led the broader market to move higher," Chang said. The analyst said that TSMC benefited from its relatively low valuation after recent consolidation. Largan got a boost from expectations of large orders to be placed by Apple Inc.
TSMC, the most heavily weighted stock in the local market, closed up 1.76 percent to close at NT$144.50, with 37.26 million shares changing hands, while Largan, dubbed one of the important Apple concept stocks in Taiwan, gained 3.04 percent to end at NT$3,555.00.
Among the gaining financial stocks, Fubon Financial Holding Co. rose 1.89 percent to close at NT$64.80 after the company announced that its subsidiary, Fubon Life Insurance, will buy a 48-percent stake in South Korea's Hyundai Life.
Cathay Financial Holding Co. rose 2.64 percent to close at NT$54.40, while CTBC Financial Holding Co. ended unchanged at NT$24.35.
"If market sentiment toward Greece's debt situation continues to improve, the local market is likely to follow in the footsteps of other financial markets to move in an uptrend, but in a gradual manner," Chang said. (By Frances Huang)


Updated : 2021-06-25 02:29 GMT+08:00