Alexa
  • Directory of Taiwan

Taiwan shares soar in mid-morning session (update)

Taiwan shares soar in mid-morning session (update)

Taipei, Sept. 9 (CNA) Taiwan shares moved sharply higher on expanded turnover in the mid-morning session Wednesday as investors here were encouraged by a strong showing on Wall Street overnight to pick up bargains, dealers said. The bellwether electronics sector led the uptrend on the local main board with heavyweights, such as Taiwan Semiconductor Manufacturing Co. (TSMC, ???), attracting aggressive buying to push up the index, while buying extended to non-high tech stocks to send the broader market even higher, they said. As of 11:06 a.m., the weighted index on the Taiwan Stock Exchange had added 3.22 percent to 8,259.25 points on turnover of NT$72.33 billion (US$2.22 billion) in the wake of a 2.42 percent increase on the Dow Jones Industrial Average overnight. The electronics sub-index was up 3.82 percent after the tech-heavy NASDAQ index closed up 2.73 percent and the Philadelphia Semiconductor Index ended up 4.42 percent in the U.S. market overnight. "Judging from the gains posted by large-cap stocks, I suspect that the current buying largely came from foreign institutional investors who took cues from a strong Wall Street rally overnight," Ta Ching Securities analyst Andy Hsu said. "It is possible that foreign institutional investors will continue to dominate the local equity market today." Hsu said that it seemed that market sentiment at home and abroad has improved to some extent after witnessing the gains posted on the U.S. market, which got a boost from a recovering China market after Chinese authorities came up with measures to stimulate share prices. The Shanghai composite index closed up 2.9 percent Monday after recovering its earlier losses "The China market is continuing to rise this morning, triggering buying in other regional markets, such as Tokyo. Under such favorable circumstances, it was no surprise that the local equity market followed suit to steam ahead," Hsu said. Thanks to the high-tech sector, the local weighted index moved up significantly, Hsu said. "I believe that foreign buying has been behind the current uptrend enjoyed by many electronics heavyweights." Among the gaining electronics stocks, TSMC, the most weighted stock in the local market, had risen 4.07 percent to NT$128.00 with 29.61 million shares changing hands. Integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. (???) had gained 9.61 percent to NT$35.35 after posting a 5.8 percent month-on-month increase in its sales for August. "Buying in the local electronics sector also reflected a move by Taiwan's central bank to keep the Taiwan dollar cheaper in a bid to protect Taiwanese exporters," Hsu said. The Taiwan dollar fell below the NT$33 mark against the U.S. dollar to a six-year low. Although the local currency bounced back Wednesday morning, the central bank is expected to continue its intervention to push the currency lower by the close. In the non-high tech sector, the petrochemical sub-index was up 2.94 percent, and the financial sub-index was also 2.78 percent higher. As of 11: 06 a.m., Formosa Plastics Corp. (??) had added 2.79 percent to NT$69.60, and Nan Ya Plastics Corp. (??) had risen 3.17 percent to NT$58.60, while Fubon Financial Holding Co. (???) had added 3.08 percent to NT$53.50 and Cathay Financial Holding Co. (???) had added 2.71 percent to NT$45.50. "I am glad to see turnover expanding this morning. Higher trading volume could help the index move even higher," Hsu said. (By Frances Huang)


Updated : 2021-09-20 05:19 GMT+08:00