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Some stocks gain after PRC raised key rates

Some stocks gain after PRC raised key rates

Taiwan share prices closed flat yesterday after an erratic session, with some stocks gaining on bargain-hunting against an overall cautious mood after Wall Street's mixed performance overnight, dealers said.
Although investors were uncertain about the impact of Beijing's latest interest rate hike, the "China-concept firms," or those that have operations on the mainland, were mostly higher due to firmer Chinese bourses and solid earnings prospects, they said.
The weighted index closed up 14.38 points or 0.17 percent at 8,493.46, off a high of 8,512.45 and a low of 8,432.32, on turnover of NT$110.20 billion (US$3.34 billion).
Farglory Land Development Co. and Cathay Real Estate Development Co. paced advances among developers after a newspaper reported the government plans urban renewal projects in Taipei.
"Government-instigated development programs will offer good business opportunities for developers," Liu Juming, a manager at IBT Securities Co. in Taipei.
Farglory Land, Taiwan's biggest construction company by market value, gained NT$1.30, or 2.2 percent, to NT$61.80. Cathay Real Estate, the second largest, rose NT$0.15, or 1 percent, to NT$15.50. Taipei officials are seeking NT$67.4 billion (US$2 billion) in private investment for urban renewal projects, the China Post reported.
Decliners outnumbered advancers 833 to 807, while 233 stocks were unchanged. A total of 27 stocks closed limit-up, while 36 were limit-down.
The New Taiwan dollar ended the morning session at NT$32.939 to the U.S. dollar, compared with the previous close of NT$32.921.
Tu Jin-lung, chairman of Grand Cathay Investment Services Corp, said many China-concept stocks benefited as newly-established securities investment trust funds were eager to build positions in promising sectors.
"Some (stocks) faced profit-taking but many turned north as fund managers took a note of firmer China markets and were willing to increase their exposure to the segment," he said.
Meanwhile, investors were pinning hopes on government support to large-cap stocks to defend the index's half-year moving average of around 8,430 points as Chen is on an overseas tour, he said.
"Financial stocks apparently were boosted by such hopes."
Among China plays, Uni-President Enterprises closed limit-up NT$2.20 at NT$33.65, Synnex Technology International rose NT$0.80 to NT$70.00, and Clevo Co. was limit-up NT$3.80 at NT$58.70.
Formosa Plastics Corp fell NT$0.40 to NT$78.60, despite confirming media reports that it is considering setting up an integrated stainless steel plant in China.


Updated : 2021-10-24 02:53 GMT+08:00