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Taiwan shares in consolidation mode in late morning session

Taiwan shares in consolidation mode in late morning session

Taipei, Nov. 5 (CNA) Taiwan shares moved in consolidation mode in the late morning session Thursday after a rally seen a session earlier on the back of hopes of closer cross-Taiwan Strait ties resulting from an upcoming meeting between President Ma Ying-jeou (???) and Chinese President Xi Jinping (???), dealers said. "The local equity market simply took a pause today after yesterday's strong showing," Ta Ching Securities Investment Consulting analyst Eric Lai said. "But I think that the market remained technically healthy and that a further uptrend is possible." As of 11:39 a.m., the weighted index on the Taiwan Stock Exchange had fallen 0.12 percent to 8,846.57 points, on turnover of NT$70.08 billion (US$2.17 billion). The local main board soared 1.65 percent to breach the 8,800-point mark Wednesday after the Presidential Office announced the previous evening that Ma and Xi will meet in Singapore Nov. 7, the first meeting between the leaders on each side of the Taiwan Strait since 1949, which has caught much attention in international news coverage. On Thursday, Ma held an international news conference to brief the public about his meeting with Xi, saying that the event is expected to help the leaders on both sides of the strait to set up a regular platform for future dialogue. Before Ma's news conference, the weighted index opened slightly higher on follow-through buying, but profit-taking set in to drag down the broader market into negative territory, with consolidation serving as the theme for the movement in the morning session, the dealers said. Large-cap high-tech stocks appeared mixed after strong gains seen a session earlier. Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, fell 1.38 percent to NT$142.50 and Hon Hai Precision Industry Co., the world's largest contract electronics maker (??), had lost 0.45 percent to NT$88.30 as of 11:39 a.m. Bucking the downturn, smartphone camera lens supplier Largan Precision Co. (???) had gained 3.38 percent to NT$2,905.00, while integrated circuit packaging and testing services firm Advanced Semiconductor Engineering Inc. (???) had added 0.79 percent to NT$38.45. "I am upbeat about the movement of the local equity market in the near term, as the market remained awash in liquidity. The future gains are likely to be driven by ample liquidity," Lai said. A day earlier, foreign institutional investors bought a net NT$21.77 billion-worth of shares on the local main board, as they were encouraged by the Ma-Xi meeting news to buy after a net buy of NT$10.58 billion recorded a session earlier. The dealers said the large net buys came after foreign investors continued to move funds into markets in the region, including Taiwan. (By Jalen Chung and Frances Huang)


Updated : 2021-09-16 18:21 GMT+08:00