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Taiwan shares end up as 'Apple concept stocks' rebound

Taiwan shares end up as 'Apple concept stocks' rebound

Taipei, Sept. 11 (CNA) Shares in Taiwan moved higher Friday as suppliers to Apple Inc. staged a technical rebound, helping the broader market reverse losses seen a session earlier, dealers said. Buying focused on large-cap high-tech stocks in the Apple supply chain, with some of the gains reflecting expectations that these companies will benefit from weakness in the Taiwan dollar to post foreign exchange gains in the third quarter, they said. The weighted index on the Taiwan Stock Exchange ended up 37.14 points, or 0.44 percent, at 8,305.82, after moving between 8,233.14 and 8,313,18, on turnover of NT$79.49 billion (US$2.45 billion). The market opened down 4.55 points and fell to the day's low on follow-through selling, but as the index slid closer to 8,200 points, bargain hunters turned active.
Responding to a 1.8 percent increase in Apple shares overnight, they picked up electronics heavyweights in the Apple supply chain to push the index into positive territory, dealers said. Late-session buying lifted the financial sector to vault the broader market above the 8,300-point mark by the end of the trading day, they said. "Investors have hopes that these Apple suppliers will see their shipments increase for the rest of the year after the U.S. consumer electronics giant unveiled the next generation iPhone along with the iPad pro, the new Apple TV and Apple Watch (on Wednesday)," Marbo Securities Investment Consulting analyst Chang Chih-cheng said. Among the suppliers to Apple, smartphone camera lens maker Largan Precision Co. (???), the most expensive stock in the local market, gained 2.36 percent to close at NT$2,815.00, and Pegatron Corp. (??), an assembler of the iPhone, added 1.76 percent to end at NT$86.80. Taiwan Semiconductor Manufacturing Co. (TSMC,???), which supplies the A9 processor for the new iPhones, rose 2.00 percent to close at NT$127.50, rebounding from a 3.10 percent fall seen a session earlier. As the most heavily weighted stock in the local market, TSMC's gains guaranteed the upturn of the broader market, dealers said. Because of the gains made by these higher Apple concept stocks, the electronics sub-index ended up 0.95 percent. "Investors have been upbeat about the local electronics sector, thinking it will benefit from a falling Taiwan dollar as the central bank has made a lot of effort to keep the currency cheap," Chang said. Chang said investors also took advantage of the relatively low valuation of financial stocks, with their enthusiasm for such shares most evident late in the session to help the sector recoup its earlier losses. The financial sector closed up 0.17 percent, with CTBC Financial Holding Co. (???) up 0.80 percent to end at NT$18.90 and Fubon Financial Holding Co. (???) closing 0.57 percent higher at NT$53.20. Despite generally positive market sentiment, turnover remained thin ahead of a policymaking meeting scheduled by the U.S. Federal Reserve for next week and could affect trading in the days to come, dealers said. "Although the index ended above 8,300 points today, it is possible that the local main board will fall below that level again amid uncertainty over whether the Fed will raise interest rates next week," Chang said. The Fed's two-day policymaking meeting is scheduled to kick off on Sept. 16. (By Frances Huang)


Updated : 2021-09-19 17:36 GMT+08:00