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Taiwan shares breach 8,000 points in mid-morning session

Taiwan shares breach 8,000 points in mid-morning session

Taipei, Aug. 28 (CNA) Taiwan shares continued to climb Friday, breaching 8,000 points by mid-morning, as investors were encouraged by a strong rebound on Wall Street overnight, dealers said.
Buying was seen across the board, in particular in the bellwether electronics sector, which was got a boost from soaring high-tech stocks on the U.S. market, dealers said.
The petrochemical sector also climbed, pushed by an increase in international crude oil prices overnight, they said.
As of 11:07 a.m., the weighted index on the Taiwan Stock Exchange had risen 2.33 percent to 8,006.58 on turnover of NT$61.44 billion (US$1.91 billion). The electronics sub-index was up 2.51 percent, while the petrochemical sub-index was 3.92 percent higher. "Wall Street posted strong gains for the second consecutive session Thursday. That is very encouraging to the global equity markets, including Taiwan," Hua Nan Securities analyst Kevin Su said.
"Judging from the current buying on the local main board, I think investors are relieved to see a more stable Wall Street at the moment."
Su said the strong gains on Wall Street -- up nearly 1,000 points in two days -- largely reflected the United States' better-than-expected gross domestic product (GDP) data for the second quarter, which eased worries over the global economy.
In addition, China's efforts to support its equity market have boosted investor sentiment worldwide, he said.
The Dow Jones Industrial Average ended up 2.27 percent Thursday after a 3.95 percent increase the previous session. The tech-heavy NASDAQ index and the Philadelphia Semiconductor Index closed up 2.45 percent and 3.73 percent, respectively, overnight.
"Gaining high-tech stocks in the U.S. market are sparking buying in that sector in Taiwan. With the electronics sector moving sharply higher, the broader market followed," Su said.
He said many investors are upbeat about the third-quarter profitability of export-oriented electronics firms, as the local central bank has intensified its efforts to keep the Taiwan dollar cheaper.
Since the beginning of the month, the Taiwan dollar has fallen 3.61 percent against the U.S. dollar.
Among the gaining electronics stocks Friday, Hon Hai Precision Industry Co., an assembler of Apple Inc.'s iPhones and iPads, had climbed 4.73 percent to NT$88.60, and Pegatron Corp., which assembles the iPhone 6, had gained 4.36 percent to reach NT$86.10 as of 11:07 a.m.
In the semiconductor sector, Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock on the local market, had risen 0.81 percent to NT$125.00, and integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. had added 5.16 percent to reach NT$33.65.
Led by the U.S.' 3.7 percent economic growth in the second quarter, international crude oil prices returned to US$40 per barrel overnight. As a result, the local petrochemical sector was up 3.92 percent on Friday morning.
Formosa Plastics Corp. had shot up 4.00 percent to NT$67.60, and Nan Ya Plastics Corp. had risen 1.95 percent to NT$57.50 as of 11:07 a.m.
Meanwhile, the financial sector rose 1.79 percent, with Cathay Financial Holding Co. up 3.14 percent at NT$46.00
"Looking at today's turnover, I think more and more investors are now willing to chase prices, taking advantage of the relatively low valuations in the equity market after the recent sell-off," Su said. (By Frances Huang)


Updated : 2021-09-22 03:55 GMT+08:00