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Taiwan shares consolidate as turnover keeps falling

Taiwan shares consolidate as turnover keeps falling

Taipei, Sept. 8 (CNA) Shares in Taiwan moved in consolidated mode on reduced turnover Tuesday as turnover continued to fall amid lingering concerns over a possible interest rate hike by the U.S. Federal Reserve, which is likely to create more turmoil and affect local share prices, dealers said. The bellwether electronics sector appeared resilient, led by semiconductor stocks such as integrated circuit designer MediaTek Inc. (???), which announced a deal a day earlier in which it will acquire smaller rival Richtek Technology Corp. (??), while the financial sector underperformed the broader market, capping the upturn, as investors feared that banks will report losses resulting from their investments in securities, the dealers said. In a market where the index moved within a narrow range, shares of smartphone vendor HTC Corp. (???) rose 10 percent, the maximum daily increase, after the company announced the unveiling of two new models in the Japan market, they said. The weighted index on the Taiwan Stock Exchange closed up 14.94 points, or 0.18 percent, at 8,001.50, after moving between 7,978.78 and 8,031.26, on turnover of NT$66.12 billion (US$2.02 billion). The market opened up 0.16 percent and rose to the day's high on a technical rebound from losses incurred in the past two sessions, but with the index breaching the psychological 8,000-point mark, selling set in to cap the gains by the end of the session, the dealers said. "When the index rose above the 8,000-point mark, investors turned more cautious about a possible major correction, so today's turnover kept shrinking, with more and more taking to the sidelines," equity market analyst Vickie Hsieh said. "On such a low trading volume, the local market went nowhere but simply consolidated." "Investors remained worried about an interest rate hike by the Fed, which has scheduled a policymaking meeting next week. In addition, before the deadline of Sept. 10 for local listed companies to report their August sales data, investors appeared reluctant to enter the market for the moment," Hsieh said. The bellwether electronics sector closed up 0.43 percent and the semiconductor sub-index ended up 0.85 percent after Mediatek, the largest IC designer in Taiwan, rose 3.45 percent to close at NT$255.00, with 11.80 million shares changing hands. MediaTek got a boost from a tender offer it announced the previous day to acquire a 35-51 percent stake in Richtek during the Sept. 8-Oct. 7 period. After the tender offer, MediaTek will enter the second stage of the acquisition plan to buy a 100 percent stake in Richtek, a deal investors think will create synergy. Richtek gained 1.07 percent to close at NT$189.00. Among other gaining high-tech stocks, Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, rose only 0.41 percent to close at NT$123.00 as the low turnover failed to significantly lift the stock. Against the mild gains on the broader market, HTC rose 10 percent to close at NT$52.60. "I prefer to believe that the stock was boosted by bargain hunting after it suffered heavy losses in recent sessions. HTC still faces strong competition in the global smartphone market and it is too early to say when the company will make a turnaround," Hsieh said. The financial sector fell 0.54 percent amid fears that more and more banks will report losses from their securities investments as the global markets have been hit by volatility. Among the falling financial stocks, Cathay Financial Holding Co. (???) fell 0.89 percent to close at NT$44.30, while Mega Financial Holding Co. (???) lost 1.27 percent to end at NT$23.35. (By Frances Huang)


Updated : 2021-09-20 09:47 GMT+08:00