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Taiwan shares end up as select tech heavyweights post gains

2018/06/13 17:19:59

Taipei, June 13 (CNA) Shares in Taiwan staged a mild technical rebound Wednesday and finished moderately higher as select large cap electronics stocks led the upturn throughout the session, dealers said.

However, the gains on the local main board were limited as investors remained wary ahead of the conclusion of a two-day policymaking meeting of the U.S. Federal Reserve later in the day, dealers said.

Market sentiment was also affected by the European Central Bank (ECB) policymaking meeting, which is scheduled for Thursday, dealers said. The weighted index on the Taiwan Stock Exchange, or the Taiex, closed up 28.42 points, or 0.26 percent, at 11,173.21, after moving between 11,119.24 and 11,188.01. Turnover totaled NT$176.35 billion (US$5.90 billion) during the session.

The market opened up 8.40 points, or 0.08 percent higher, in the wake of a lackluster Wall Street, where the Dow Jones Industrial Average fell 0.01 percent ahead of the conclusion of the Fed meeting, dealers said.

In the mid-morning session, buying on the Taiex accelerated to some extent, with large cap tech stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in focus, dealers said.

The upturn was limited, however, as the non-tech sector remained sluggish amid uncertainty over the Fed meeting, they added.

"Although the market has been anticipating that the Fed will raise interest rates in the meeting, investors wanted more clues about how many more interest hikes will be implemented for the rest of the year," Concord Securities analyst Kerry Huang said. "Investors preferred to remain cautious so the local equity market continued to move in a narrow range throughout the session."

TSMC, the most heavily weighted stock on the local market, gained 1.31 percent to close at the day's high of NT$232.00 with 28.92 million shares changing hands.

Also in the bellwether electronics sector, Largan Precision Co., a smartphone camera lens supplier to Apple Inc., rose 6.53 percent to end at NT$4,730.00 after the company said its production capacity had been fully booked in July.

United Microelectronics Corp. (UMC) soared by the daily maximum 10 percent to end at NT$18.50 after it said it will raise the price of its 8-inch wafers due to strong demand.

"Nonetheless, the upturn on the broader market was limited as some smaller tech stocks saw profit taking and non-tech stocks were mixed during the session," Huang said.

Among the falling electronics component stocks, Walsin Technology Corp. dropped 4.91 percent to close at NT$405.00 and Holy Stone Enterprise slid 4.34 percent to end at NT$220.50 as investors locked in the gains they had built in recent sessions.

In the old economy sector, food brand Uni-President Enterprises Corp. dropped 1.07 percent to close at NT$73.70, and Formosa Chemicals & Fibre Corp. fell 0.43 percent to finish at NT$115.50, while Nan Ya Plastics Corp. ended 0.70 percent higher at NT$85.90.

"In addition to watching the Fed meeting, investors have also been keeping a close eye on whether the ECB will announce an end to its quantitative easing" which would drain liquidity from the equity markets, Huang said.

(By Frances Huang)