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Taiwan shares end flat; Largan hits fresh high

Taiwan shares end flat; Largan hits fresh high

Taipei, July 2 (CNA) Shares in Taiwan closed little changed Thursday as the market failed to overcome the nearest technical resistance ahead of 9,400 points, giving up most of its earlier gains by the close, dealers said. Large-cap high-tech stocks generally stayed in the doldrums, while smartphone camera lens supplier Largan Precision Co. (???) continued hitting a closing fresh high on hopes that the next generation of the iPhone will upgrade the camera equipment in which the Taiwanese firm specializes, the dealers said. While buying rotated to select old economy stocks, their gains failed to give a boost to the broader market at a time when many investors remained wary of the financial woes in debt-ridden Greece, they added. The weighted index on the Taiwan Stock Exchange ended up 4.01 points, or 0.04 percent, at 9,379.24, after moving between 9,350.05 and 9,400.68, on turnover of NT$84.54 billion (US$2.74 billion). The market opened up 0.11 percent and rose to the day's high in the wake of a rebound staged by Wall Street overnight amid increasing optimism that Greece and its creditors will solve the European country's debt problems at last, the dealers said. But with the index briefly breaching 9,400 points, some investors locked in their earlier gains to erode almost the upturn by the end of the session, with market heavyweights in the bellwether electronics sector generally remaining slow, they said. "I think that the reason behind the Wall Street rebound largely came from an improvement in the manufacturing activity in the U.S.," Concord Securities analyst Kerry Huang said, referring to that country's Institute for Supply Management's manufacturing purchasing managers index, which rose to 53.5 in June from 52.8 in May. "Ahead of a referendum scheduled by Greece for July 5, not many investors at home are willing to chase prices and the local market is expected to remain choppy," Huang said. The Greek referendum is aimed at finding out whether people in the country will accept the conditions set by its creditors. Officials in the eurozone said finance ministers in the bloc will not hold more talks with Greece until after the vote. "So even though the index rose in the early morning session, many investors still preferred to stay on the sidelines for the moment. With turnover low, it is unlikely for the electronics sector to make a breakthrough any time soon," Huang said. The electronics sub-index ended down 0.02 percent. Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, closed unchanged at NT$98.00 and integrated circuit designer MediaTek Inc. (???) fell 1.52 percent to end at NT$421.00. Largan kept its head of steam, rising 0.68 percent to close at NT$3,705.00, a new high in the stock's history. "Largan remains the favorite of institutional investors due to its sound fundamentals," Huang said. In the old economy sector, EVA Airways (???) gained 3.11 percent to close at NT$21.55 and rival China Airlines (??) added 6.02 percent to end at NT$14.10 after crude oil prices fell to a two-month low overnight. The solar energy sector attracted buying on higher global demand expectations. Green Energy Technology Inc. (??) rose 10 percent, the maximum daily increase, to close at NT$16.70 and Solartech Energy Corp. (??) gained 2.37 percent to end at NT$19.40. (By Frances Huang)


Updated : 2021-09-22 17:01 GMT+08:00