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Taiwan shares edge lower despite late rally

Taiwan shares edge lower despite late rally

Taipei, July 3 (CNA) Shares in Taiwan recovered most of their early losses Friday as bargain hunters turned active after seeing the market's benchmark index fall below the 9,300-point mark, dealers said. The buying was most visible in the electronics and financial sectors, helping the broader market climb out of an earlier sell-off caused by worries over Greece's debt problems and heavy losses in the Shanghai market, they said. The weighted index on the Taiwan Stock Exchange closed down 21.01 points, or 0.22 percent, at 9,358.23, after moving between 9,265.14 and 9,369.50, on turnover of NT$82.28 billion (US$2.66 billion). The market opened down on a lackluster Wall Street overnight, and selling escalated as the debt situation in the eurozone and further losses in the Shanghai market prompted investors here to unload their holdings, dealers said. After the index fell below 100 points within the first hour of trading, some investors were encouraged by a small recovery in Shanghai as noon approached and decided to take advantage of relatively low valuations caused by the early downturn, limiting the index's decline at the close, they said. "Although the weighted index closed above 9,300 points due to the late bargain hunting, turnover remained thin, indicating market sentiment remained weak ahead of a referendum scheduled by Greece for Sunday," KGI Securities analyst Phil Chu said. In the upcoming vote, people in Greece will decide whether to accept the austerity conditions set by its creditors. Those in Greece backing a "yes" vote have argued that a "no" vote would increase the chances of Greece exiting from the eurozone. "The referendum has created uncertainty. Such uncertainty is the last thing investors want to see, so many of them preferred to stay on the sidelines, dragging down turnover," Chu said. The analyst said the early sell-off in the market was likely led by foreign institutional investors amid concerns that the debt woes in Greece will create more volatility in global financial markets. According to the TWSE, foreign institutional investors sold a net NT$5.68 billion in shares on the main board Friday. "Friday's session had a silver lining, however. There was some technical support after the index fell below 9,300 points, and because of the rebound staged by large-cap stocks, the market stabilized to some extent," Chu said. Among the market heavyweights in the bellwether electronics sector, Taiwan Semiconductor Manufacturing Co. (???) gained 0.71 percent to close at the day's high of NT$142.50, off an early low of NT$140.00. Integrated circuit designer MediaTek Inc. (???) also ended at the day's high of NT$426.00, off an early low of NT$418.50. In the financial sector, Fubon Financial Holding Co. (???) added 0.65 percent to close at the day's high of NT$62.20, off an early low of NT$61.00, while Cathay Financial Holding Co. (???) rose 0.38 percent to end at NT$52.40, off an early low of NT$51.70. "Even if the referendum in Greece yields good results, the local market could face stiff technical resistance ahead of 9,500 points after a rebound," Chu said. (By Frances Huang)


Updated : 2021-09-23 06:07 GMT+08:00