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Taiwan shares end up as large-cap stocks rebound

Taiwan shares end up as large-cap stocks rebound

Taipei, July 21 (CNA) Shares in Taiwan closed higher Tuesday as select large-cap electronics stocks attracted late-session bargain hunting, helping to push the broader market back to the 9,000 point mark, dealers said.
Turnover remained thin, however, as many investors stayed on the sidelines amid worry that the second-quarter results and third-quarter guidance from high-tech companies will be disappointing in the current earnings season, dealers said.
The weighted index on the Taiwan Stock Exchange ended up 30.96 points, or 0.34 percent, at 9,005.96, after moving between 8,940.38 and 9,010.71. Turnover totaled NT$71.65 billion (US$2.30 billion) during the session.
The market opened up 0.32 percent, and moved to the day's high on a technical rebound from the losses in the previous session but selling emerged, dragging the index into the red again, dealers said.
However, buying in semiconductor heavyweights late in the trading session helped push the broader market back into positive territory by the close, dealers said.
"Thanks to semiconductor stocks, such as IC designer MediaTek Inc. and DRAM suppliers Inotera Memories Inc. and Nanya Technology Corp., the broader market bounced back late in the trading session and closed above 9,000 points today," equity market analyst Vickie Hsieh said.
MediaTek rose 3.03 percent to close at NT$357.00, Inotera gained 5.24 percent to end at NT$21.10, and Nanya added 7.56 percent to close at NT$37.70.
Taiwan Semiconductor Manufacturing Co, (TSMC), the most heavily weighted stock on the local market, rose 1.08 percent to finish at NT$140.50 after moving above its previous closing level throughout the session.
"After recent sell-off, I think high tech stocks, in particular large-cap ones, were oversold. It seemed that foreign institutional investors shifted to the buy side to pick up bargains," Hsieh said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$5.09 billion (US$163 million) worth of local shares on the main board Tuesday. It was the fifth consecutive session that foreign institutional investors served as net buyers on the TWSE.
Hsieh said the food sector, which closed up 3.39 percent on hopes that its bottom line will be boosted by peak season demand in summer, continued its momentum and provided support to the broader market.
Among the gaining food stocks, Wei Chuan Foods Corp. rose 8.93 percent to close at NT$21.35, and its rival Uni-President Enterprises Corp. added 4.97 percent to end at NT$57.00.
"Despite today's rebound, the trading volume remained low, indicating that many investors are reluctant to chase prices during the earnings season," Hsieh said. "Market sentiment has turned cautious since TSMC gave a lower-than-expected third-quarter sales forecast last week."
TSMC forecast third-quarter growth of 0.7 percent to 2.2 percent from the previous quarter, well below the market estimate of 5 percent.
"Since the index failed to close above the five-day moving average of 9,024 points, the market remains technically weak so I expect it will continue in consolidation mode in the short term," Hsieh said. (By Frances Huang)


Updated : 2021-09-16 18:34 GMT+08:00