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Taiwan shares rebound, remain below 9,900 points

2018/12/13 16:09:04

Taipei, Dec. 13 (CNA) Shares in Taiwan continued their upward trend for the third consecutive session Thursday, moving up 0.43 percent but remaining below 9,900 points, as concerns eased over trade tension between the United States and China.

The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, closed up 42.31 points, or 0.43 percent, at 9,858.76, after moving between 9,815.5 and 9,871.96, on turnover of NT$111.99 billion (US$3.63 billion).

The market opened up 10.87 points at 9,827.32 in reflection of strong performance in U.S. markets overnight, where the Dow Jones Industrial Average rose 157.03 points as Chinese telecom group Huawei Technologies Co. Chief Financial Officer Meng Wanzhou, who was facing extradition to the U.S., was granted bail by a Canadian court.

All the major stock categories gained ground, with the cement and food sectors moving up most by 1.15 percent and 1.07 percent, respectively, while the financial sector surged 0.7 percent and plastics shares gained 0.52 percent.

Among stocks of three major Taiwanese companies in Apple's supply chain, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which provides processors for iPhone production and is the most heavily weighted stock in Taiwan, fell 0.26 percent to end at NT$226.00.

Meanwhile, Largan Precision Co., a supplier of smartphone camera lenses to Apple, dropped 0.74 percent to end at NT$3,320.00.

Bucking the downturn, iPhone assembler Hon Hai Precision Industry Co. gained 2.52 percent to end at NT$73.00.

In the cement sector, Taiwan Cement Corp. rose 1.57 percent to close at NT$35.50 and Asia Cement Corp. advanced 1.05 percent to end at NT$33.50.

According to the TWSE, foreign institutional investors bought a net NT$3.14 billion-worth of shares on the main board Thursday.

Hua Nan Securities Investment Management Chairman David Chu (儲祥生) said the stock market was continuing its rebound, rising above the 10-day moving average of 9,850 Thursday in tandem with gaining Asian stocks as the U.S.-China trade impasse showed signs of possible easing after Beijing signaled that it would cut tariffs on imports of U.S. cars and Meng was released on bail.

(By Pan Chih-yi and Evelyn Kao)