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Taiex ends flat as investors cash in on profits

Taiex ends flat as investors cash in on profits

Taiwan shares prices closed little changed yesterday as early gains made on the back of Wall Street's record overnight performance gave way to late profit taking, dealers said.
"Consensus toward the U.S. economy turned out to be overly pessimistic," said Eric Chou, who helps manage US$2.5 billion of assets at Jih Sun Securities Investment Trust Co. in Taipei. "The latest report will force many investors to change their investment strategies and add more Asian exporters."
Taiwan's property stocks, such as Cathay Real Estate Development Co., fell after a government report urged investors to be cautious, as oversupply may cause property prices to fall.
The Taiex index slid 0.25 point, or less than 0.1 percent, to close at 7,732.93 in Taipei. The measure earlier rose as much as 0.6 percent. About two stocks declined for every one that rose. Futures due in January rose 0.1 percent to 7,800.
Hon Hai, Taiwan's biggest electronics company, rose NT$2, or 0.9 percent, to NT$231. Via Technologies Inc., Taiwan's largest maker of personal computer chipsets, jumped NT$1.65, or 4.6 percent, to NT$37.90. AU Optronics Corp., the world's third-largest LCD maker, added NT$0.40, or 0.9 percent, to NT$44.80.
Sales of new homes in the U.S. advanced 3.4 percent last month to an annual pace of 1.047 million units. Economists predicted an increase to 1.018 million in a Bloomberg News survey. The year-on-year gain in median house prices during November was the most in five months. The U.S. is Taiwan's second-biggest export market after China.
Cathay Real Estate, the island's biggest property developer by market value, dropped NT$0.60, or 2.5 percent, to NT$23.15. Continental Engineering Corp., Taiwan's largest construction service provider by market value, slipped NT$0.55, or 1.9 percent, to NT$27.75.
Taiwan's Ministry of the Interior urged individuals to refrain from buying properties for investment purposes, the Central News Agency reported on Wednesday, citing a report by the ministry's Architecture and Building Research Institute. The report also advised developers to be more conservative in planning projects.
An index tracking the performance of 31 property-related stocks in Taiwan fell 2.4 percent, the biggest drop among the 19 industrial groups on Taiwan's Taiex index.
Wistron Corp., which makes the Xbox 360 for Microsoft Corp., gained NT$0.10, or 0.2 percent, to NT$48.80. The stock gained after the Economic Daily News reported GS Capital Partners V, a private equity fund managed by Goldman Sachs Group Inc., will make an offer to buy Wistron. GS Capital will offer NT$60 for each Wistron share, the newspaper reported. Wistron, which declined to confirm or deny the report, said in a statement it hasn't received any takeover offer from the fund.


Updated : 2021-04-23 20:22 GMT+08:00