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Taiwan shares higher in mid-morning session

Taiwan shares higher in mid-morning session

Taipei, June 25 (CNA) Taiwan shares moved higher off an early high in the mid-Thursday session after the index briefly breached the 9,500-point mark, the nearest technical resistance, dealers said.
Buying focused on large-cap stocks such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co., helping the broader market float above the previous close, the dealers said.
As of 10:55 a.m., the weighted index on the Taiwan Stock Exchange had risen 0.67 percent to 9,460.20 points, off an early high of 9,500.57, on turnover of NT$54.15 billion (US$1.75 billion).
"Investors here took cues from a move by foreign institutional investors to post a net of long-position contracts in the futures market yesterday, so buying was ignited soon after the local bourse opened, pushing the index to 9,500 points," Hua Nan Securities analyst Kevin Su said.
Foreign institutional investors recorded a net of more than 800 long-position contracts in the futures market Wednesday, the first time for foreign investors to register a net of long positions since early May.
"Strong buying earlier this morning showed that investors were relieved to some extent in the wake of the net in long-position contracts after their sentiment had been dampened by constant selloffs by foreign investors in recent sessions," Su said.
Judging from the gains posted by the local bourse, Su said, the market has been expecting that the central bank will come up with stimulus measures in its quarterly policymaking meeting scheduled for later in the day.
"Since Taiwan has reported disappointing export data, investors are hoping that the central bank will do something to drag down the Taiwan dollar further in a bid to protect Taiwanese exporters," Su said. In May, Taiwan's export orders fell 5.9 percent from a year earlier, marking the second consecutive monthly export order fall.
Su said that market heavyweights have been in the spotlight after the index moved higher, which boosted turnover.
Among the gaining stocks, TSMC, the most heavily weighted stock in the local market, had added 1.38 percent to NT$147.00, with 25 million shares changing hands, while integrated circuit designer MediaTek Inc. had gained 1.54 percent to NT$428.00 as of 10:55 a.m.
Hon Hai, the world's largest contract electronics maker, had risen 1.43 percent to NT$99.00 as investors embraced high hopes that company Chairman Terry Gou will release positive leads in the ongoing annual general meeting.
"But after the index hit 9,500 points, selling followed to erode part of the earlier gains," Su said. "It seemed that technical hurdles ahead of 9,500 points have been very high and it is unlikely for the market to stand well above them soon."
Su said that investors should keep alert over the debt problems in Greece after the country's international creditors rejected its reform proposal, adding that any news from talks between the European country and its creditors could move the global financial markets. (By Frances Huang)


Updated : 2021-02-28 18:42 GMT+08:00