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Taiwan shares stage mild rebound

Taiwan shares stage mild rebound

Taipei, July 28 (CNA) Shares in Taiwan staged a mild technical rebound Tuesday as gains posted by select high-tech stocks helped the broader market climb out of a 2.4 percent plunge seen a session earlier, dealers said.
Some Taiwanese suppliers to Apple Inc., led by smartphone camera lens maker Largan Precision Co., attracted bargain hunters who took advantage of heavy losses incurred a day earlier, vaulting the index back into positive territory, the dealers said.
However, turnover remained thin, below the NT$100 billion (US$3.17 billion) level, since many investors preferred to stay on the sidelines amid fears that volatility in the global markets will continue to affect local share prices, they said.
The weighted index on the Taiwan Stock Exchange closed up 25.81 points, or 0.3 percent, at 8,582.49, after moving between 8,532.00 and 8,635.88, on turnover of NT$98.68 billion.
The market opened up 0.2 percent and moved to the day's high after bouncing back from Monday's steep decline, but with the index briefly breaching the 8,600 point mark, some investors rushed to lock in their earlier gains to compromise the upturn by the end of the session, the dealers said.
"After yesterday's plunge, the local bourse remained technically fragile," Marbo Securities Investment Consulting analyst Chang Chih-cheng said. "It was no surprise that local share prices encountered a cap ahead of the nearest technical resistance level of 8,600 points today."
Chang said that as Wall Street remained shadowed by the ongoing earnings season, many investors feared more volatility in the U.S. market due to possible negative leads from upcoming investor conferences. "Valuations on Wall Street remain high despite recent corrections. With a volatile U.S. market likely, investors here remained reluctant to chase prices for the moment," Chang said.
He said that some Apple concept stocks largely benefited from bargain hunting, but "their gains were simply technical in nature."
Among the gaining Apple suppliers, Largan, which fell 5.21 percent Monday, rebounded by 4.05 percent to close at NT$3,215.00 Tuesday, and metal casing maker Catcher Technology Co. gained 2.55 percent to end at NT$342.00 after falling 4.31 percent a session earlier.
In the flat panel sector, AU Optronics Corp. added 4.75 percent to close at NT$11.45 ahead of an investor conference scheduled for after the market close, while rival Innolux Corp. rose 3.85 percent to end at NT$12.15.
Underperforming the broader market, Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, closed unchanged at NT$134.00, while Hon Hai Precision Industry Co., an iPhone and iPad assembler, lost 0.11 percent to end at NT$90.00.
In the non-high tech sector, Fubon Financial Holding Co. fell 3.58 percent to close at NT$56.60 and Nan Ya Plastics Corp. lost 1.67 percent to end at NT$64.80, while food maker Uni-President Enterprises Corp. (??) rose 2.02 percent to close at NT$55.60.
"I expect that the local equity market will continue to consolidate for some time amid lingering cautious sentiment before making a take-off," Chang said. (By Frances Huang)


Updated : 2021-09-26 08:54 GMT+08:00