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Share prices edge higher in Taiwan

Share prices edge higher in Taiwan

Shares in Taiwan opened lower Monday after a plunge on Wall Street on Friday but rebounded to close just off the day's high on rallies among select electronics stocks.

The benchmark index on the Taiwan stock exchange closed up 24.85 points, or 0.3 percent, at 8,282.17, after trading between a low of 8,191.53 and a high of 8,289.59. Turnover was an anemic NT$77.01 billion (US$2.34 billion).

Although the bourse ended higher, turnover was low because foreign institutional buyers stayed on the sidelines entering the Christmas holiday.

Financial stocks underperformed the broader market on Monday, falling by 2.09 percent as they continued to feel the sting of the central bank's interest rate cut of 0.125 percentage points for the second consecutive quarter on Dec. 17.

Picking up the slack were soaring electronics shares amid a recent frenzy of merger and acquisition speculation.

Though not linked with any specific suitors, Taiwan's two biggest flat-panel makers, AU Optonic, and Innolux, both rose the maximum 10 percent to close at NT$9.53 and NT$10.40, respectively. Their momentum boosted other electronics stocks.

Nanya Technology Corporation was boosted for the third consecutive trading session by Micron Technology's proposed acquisition of Nanya's stake in DRAM maker Inotera Memories, rising 8.7 percent to close at NT$57.5.

An analyst with Capital Investment Trust Corp. said that while economic fundamentals have shown few signs of economic growth, the stock market could hit bottom in the fourth quarter and corporate profits should improve in the future.

The analyst said only Taiwan, China and India have cut their key interest rates in the second half of the year, indicating that inflationary pressures in those markets have eased and easy monetary policies will continue, which should mean the injection of more funds in the market. (By Han Ting-ting, Tien Yu-pin and Lilian Wu)

Updated : 2021-09-26 05:12 GMT+08:00