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Taiwan shares briefly up 100 points in morning session

Taiwan shares briefly up 100 points in morning session

Taipei, Aug. 27 (CNA) Taiwan shares continued an uptrend Thursday morning and even briefly moved more than 100 points higher as investors here were motivated by a soaring Wall Street overnight to pick up bargains soon after the local equity market opened, dealers said. The bellwether electronics sector led the upturn reflecting a strong rebound staged by high-tech stocks in the U.S. market overnight, but the financial sector underperformed the broader market to cap the gains, they said. As of 10:58 a.m., the weighted index on the Taiwan Stock Exchange had added 1.20 percent to 7,808.40 points, off an early high of 7,832.84, on turnover of NT$57.59 billion (US$1.77 billion). The electronics sub-index was up 1.88 percent. "It seemed that many investors are happy about the significant gains posted by Wall Street overnight," Ta Ching Securities Investment Consulting analyst Eric Lai said. "As long as Wall Street stabilizes, investors here will become more willing to raise their holdings." "In particular, bargain hunters, who are eager to take advantage of the current relatively low valuations after the recent sell-off, are rushing to pick up stocks for the moment," Lai said. Overnight, the Dow Jones Industrial Average closed up 619.07 points, or 3.95 percent, at 16,285.51 in the wake of the better-than-expected durable goods orders data for July and amid reduced expectations that the U.S. Federal Reserve will raise interest rates in September. The tech-heavy Nasdaq index also closed up 4.24 percent and the S&P 500 Index ended up 3.90 percent. "Encouraged by the gains posted by high-tech stocks in the U.S. market, investors here have been chasing local electronics stocks which had been oversold in recent sessions," Lai said. "Although it remains to be seen whether Wall Street will continue to steam ahead, its latest gains indicated that the U.S. market has showed signs of stabilizing. It is positive development for the global markets." Among the gaining electronics stocks, shares of smartphone camera lens supplier Largan Precision Co. (???), the most expensive stock in the local market, gained 4.17 percent to NT$3,000, and Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, had risen 1.20 percent to NT$84.50 as of 10:58 a.m. The companies are two of the most important Taiwanese suppliers to Apple Inc. Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock in the local market, had gained 1.63 percent to NT$124.50 with 23.93 million shares changing hands. The financial sub-index was up only 0.39 percent with Fubon Financial Holding Co. (???) up 0.19 percent at NT$53.50. However, Cathay Financial Holding Co. (???) fell 0.22 percent to NT$44.50. "Buying in the financial sector appeared relatively slow as investors are afraid that financial institutions will incur losses resulting from their securities investments amid the current financial turmoil," Lai said. "But, the gains on the broader market now are still encouraging as the weighted index has breached the 10-year moving average (of around 7,790 points) today, making the local main board technically healthier," he said. (By Jalen Chung and Frances Huang)


Updated : 2021-09-25 18:27 GMT+08:00