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Taiwan shares end in consolidation prior to TSMC results

Taiwan shares end in consolidation prior to TSMC results

Taipei, July 16 (CNA) Shares in Taiwan closed slightly lower Thursday after moving in a narrow range on reduced turnover, as many investors stayed on the sidelines to await the release of second- quarter results by Taiwan Semiconductor Manufacturing Co. (TSMC, ???), dealers said. Caution over TSMC's outlook also prompted investors to cut their holdings in other semiconductor stocks, while smartphone camera lens supplier Largan Precision Co. outperformed the rest of the high-tech sector after foreign brokerages raised their target prices on the stock, the dealers said. The financial sector bucked the downturn on the broader market to post gains, preventing the index from falling further, on expectations that interest rates will go higher and boost banks' profitability, they added. The weighted index on the Taiwan Stock Exchange closed down 11.99 points, or 0.13 percent, at 9,042.21, after moving between 9,021.82 and 9,085.31, on turnover of NT$76.58 billion (US$2.47 billion). The market opened up 0.18 percent and rose to the day's high in the wake of a move by the Greek parliament to pass a bailout agreement in exchange for US$96 billion in relief funds from creditors, the dealers said. But with the index moving closer to 9,100 points, selling emerged to drag down the market and consolidation dominated trade for the rest of the session, they said. "After being relieved of concerns over the debt problem in Greece, investors shifted their attention back to the local market at a time when an earnings season has started," Concord Securities analyst Kerry Huang said. In particular, Huang said that ahead of an investor conference scheduled by TSMC for this afternoon, investors preferred to stay on the sidelines amid fears that the world's largest contract chip maker would give a negative outlook. "Without market heavyweights such as TSMC attracting buying, it was no surprise that the broader market moved in ranged trade throughout the session. The trading was quiet," Huang said. TSMC, the most heavily weighted stock in the local market, fell 1.44 percent to close at NT$136.50. After the market closed, the chip maker gave lower-than-expected sales guidance for the third quarter, due to slower smartphone demand and uncertainty over the global economy. Led by TSMC, integrated circuit designer MediaTek Inc. (???) lost 1.07 percent to end at NT$369.00 and IC packaging and testing service provider Advanced Semiconductor Engineering Inc. dropped 0.97 percent to close at NT$40.75. Shares of Largan, which reported in an investor conference after the market closed that its second-quarter earnings came within market expectations, rose 3.53 percent to end at NT$3,520.00. Before the investor conference, Daiwa Securities issued a target price on the stock at NT$4,080.00. "While the bellwether electronics sector remained slow as a whole, the financial sector remained resilient, stabilizing the entire market," Huang said. The financial sub-index closed up 0.41 percent, while the electronics sub-index ended down 0.35 percent. Among the gaining financial stocks, CTBC Financial Holding Co. (???) rose 1.05 percent to close at NT$24.10 and E. Sun Financial Holding Co. (???) added 3.30 to end at NT$21.90. (By Frances Huang)


Updated : 2021-09-24 01:25 GMT+08:00