Taiwan shares end up moderately in reduced turnover

2018/07/10 17:28:09 fontsize-small fontsize-default fontsize-big
Taiwan shares end up moderately in reduced turnover

Taipei, July 10 (CNA) Shares in Taiwan closed moderately higher Tuesday on follow-through buying focused on large cap stocks, but the specter of trade friction between the United States and China still dampened investor sentiment.

The weighted index on the Taiwan Stock Exchange (TWSE), the Taiex, ended up 36.61 points, or 0.34 percent, at 10,756.89, after moving between 10,728.24 and 10,776.47, on turnover of NT$124.99 billion (US$4.12 billion).

The market opened up 0.16 percent and rose to the day's high as momentum extended from a session earlier, when the Taiex soared 1.05 percent.

Investors reacted to gains on Wall Street, where the Dow Jones Industrial Average jumped more than 300 points, or 1.31 percent, overnight, dealers said.

As the Taiex moved closer to 10,800 points, however, some investors shifted to the sell side to lock in gains made Monday amid concerns over the effect of trade friction between the U.S. and China, they said.

"The trade issue is taking a backseat for the moment, but it has not been resolved yet," KGI Securities analyst Phil Chu said.

"Investors are watching closely whether Washington and Beijing will come up with new tariffs on additional goods after they put in tariffs on US$50 billion of each other's products as has already been announced."

"Investors also fear a major pullback ahead of the nearest technical resistance of 10,800 points, so they preferred to pocket their gains for the time being," Chu said.

They were also more cautious Tuesday because of worries that negative leads could emerge on Wednesday when the exchange will likely be closed because of the onset of Super Typhoon Maria, Chu said.

Thanks to the gains posted by TSMC, the most heavily weighted stock in the local market, the broader market did well to close in positive territory, Chu said.

TSMC rose 0.23 percent to close at NT$222.00, offsetting losses suffered by smartphone camera lens supplier Largan Precision Co. and iPhone assembler Hon Hai Precision Industry Co.

They fell 1.63 percent and 0.37 percent, respectively, to close at NT$4,840.00 and NT$80.50.

Also in the electronics sector, memory chipmaker Nanya Technology Corp. rose 3.58 percent to close at NT$83.90, and integrated circuit designer MediaTek Inc. gained 2.75 percent to end at NT$280.00.

In the financial sector, which closed up 0.44 percent after bank stocks gained on Wall Street on Monday, Fubon Financial Holding Co. added 0.80 percent to end at NT$50.50, and Mega Financial Holding Co. rose 0.56 percent to close at NT$26.70.

"Unless turnover increases to NT$150 billion or higher, it will not be easy for the broader market to overcome technical hurdles ahead of 10,800 points," Chu said.

According to the TWSE, foreign institutional investors bought a net NT$2.28 billion in shares on the exchange Tuesday.

(By Frances Huang)
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