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Taiwan shares give up most of early gains above 9,100 point mark

Taiwan shares give up most of early gains above 9,100 point mark

Taipei, July 14 (CNA) Shares in Taiwan ended little changed Tuesday as investors rushed to lock in their earlier gains with the weighted index briefly breaching the 9,100 point level, the nearest technical resistance, dealers said. The bellwether electronics sector suffered more visible late-session selling as the gains posted by many large-cap stocks were largely eroded, while the financial sector remained resilient to lend some support to the broader market, they said. The weighted index on the Taiwan Stock Exchange closed up 7.84 points, or 0.08 percent, at the day's low of 9,041.76, off an early high of 9,124.76, on turnover of NT$99.91 billion (US$3.22 billion). The market opened up 0.45 percent and rose to the day's high in the wake of a strong showing made on Wall Street and the significant gains posted by markets in France and Germany after debt-ridden Greece reached a deal with its creditors to solve its debt problems, dealers said. But, after the index vaulted past 9,100 points, selling emerged with electronics stocks becoming the focus of attention and eating away most of the earlier gains at the close, they said. "Although Greece struck a deal with its creditors, the deal is pending approval from the Greek parliament by Wednesday," Marbo Securities Investment Consulting analyst Chang Chih-cheng said, "Before the approval, the market still faces uncertainty." "Judging from today's turnover of less than NT$100 billion, I think that many investors appeared reluctant to chase prices for the moment and it was no surprise that the market failed to overcome the technical hurdles above 9,100 points," Chang said. The bellwether electronics sector closed down 0.14 percent at 351.48 points, off an early high of 356.06. "The earnings season is approaching so investors preferred to hold a wait-and-see attitude for now," Chang said. Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock in the local market, ended unchanged at NT$138.50, off an early high of NT$140.50. TSMC is scheduled to hold an investor conference Thursday to detail its second quarter results and give its third quarter guidance. Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads for Apple Inc., fell 1.56 percent to end at NT$94.70, off an early high of NT$97.20, and Catcher Technology Co. (??), a metal casing supplier to Apple, shed 2.62 percent to close at NT$371.00, off an early high of NT$386.00. Outperforming the broader market, Largan Precision Co. (???), a smartphone lens supplier also to Apple, gained 2.94 percent to close at NT$3,500.00 on expectations that it will receive more orders from Apple for production of the next iPhones. Largan has also scheduled an investor conference for Thursday. The financial sector closed up 0.65 percent, preventing the broader market from dipping into negative territory as investors had high hopes that foreign institutional investors would continue to pick up financial stocks by taking advantage of their relatively low valuations, dealers said. Mega Financial Holding Co. (???) added 1.48 percent to close at NT$27.50, and E. Sun Financial Holding Co. (???) rose 2.43 percent to end at NT$21.10. "Where the local market will head depends on foreign institutional investors' strategies," Chang said. "While the Greek parliamentary vote will move the market, when the index falls below 9,000 points, buying opportunities will emerge." (By Frances Huang)


Updated : 2021-09-19 04:10 GMT+08:00