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Taiwan shares edge higher led by financial, electronics sectors

2012/05/21 19:12:33

Taipei, May 21 (CNA) Share prices in Taiwan rebounded 0.57 percent on Monday, backed by gains in large-cap stocks, but volume remained relatively low as investors continued to grapple with uncertainties weighing down the local bourse and Europe's debt crisis.

The weighted Taiex ranged between a high of 7,220.10 and a low of 7,164.90 before closing up 41.04 points, or 0.57 percent, at 7,192.23 on turnover of NT$53.59 billion (US$1.81 billion).

Ko Meng-tsung, vice president of SinoPac Securities Co., said trading was subdued in part because President Ma Ying-jeou did not announce in his inaugural address on Sunday any new policies that could have turned the local bourse more bullish.

Many investors were also staying on the sidelines amid uncertainty over the government's plan to tax gains on stock investments and fresh worries about the euro zone debt crisis, Ko said.

He also noted that persistent low volume, which will keep share prices at relatively low levels, could affect Taiwan's economic growth.

A total of 1,816 stocks closed up and 1,886 finished down, while 518 remained unchanged.

The financial sector, electronics shares, automobile stocks and energy-saving concept stocks outperformed the broader market throughout the trading session.

Automaker Yulon Motor Co. rose 1.06 percent to end at NT$47.70. Taiwan-based China Motor Corp. closed up 0.20 percent at NT$24.35.

Solar cell maker Gintech Energy Corp. rose by the daily maximum of 7 percent to close at NT$33.70, with buy orders for over 12 million shares unfilled as of the end of the session.

Seven of the market's eight major stock categories closed up, with financial shares showing the highest gains at 0.9 percent.

State-invested Mega Financial Holding Co. rose 1.20 percent to NT$21.05. Chinatrust Financial Holding Co., the nation's third-largest financial services provider, closed up 1.49 percent at NT$17.05.

The machinery and electronics sector rose 0.63 percent as a whole, with TPK Holding Co Ltd., Apple Inc's touch module supplier, rising 6.5 percent to close at NT$385.00.

Smartphone maker HTC Corp. gained 1.62 percent to end at NT$407.00 and cellphone camera lens supplier Largan Precision Co. rose 2.39 percent to close at NT$558.00.

Cement stocks and textile shares both gained 0.68 percent, construction shares gained 0.49 percent, plastics and chemical stocks rose 0.32 percent and food shares rose 0.03 percent.

Paper and pulp shares lost 0.13 percent.

(By Wei Shu and Hanna Liu)