Taipei, Dec. 18 (CNA) Shares in Taiwan closed moderately higher Wednesday following initial losses as market sentiment remained cautious ahead of a U.S. Federal Reserve policy meeting.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 150.66 points, or 0.65 percent, at 23,168.67 after moving between 22,934.59 and 23,211.17. Turnover totaled NT$398.99 billion (US$12.27 billion).
The market opened down 3.58 points and fell to the day's low in the early morning session. Investors remained cautious following weakness in the U.S. markets -- the Dow Jones Industrial Average dropped for the ninth session in a row on Tuesday (U.S. time) ahead of the Fed's interest rate decision.
But in the afternoon session, buying increased, which helped the broader market recover earlier losses by the end of the session, dealers said. The focus was largely on large-cap stocks, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC).
"Despite the rebound, the market remained in consolidation mode amid uncertainty over the Fed's decision regarding interest rates," Mega International Investment Services Corp. analyst Alex Huang said.
"Many investors are worried that the Fed will slow the pace of the current rate cut cycle after Donald Trump returns to the White House due to his tariff hike threats, which could push up inflation," Huang added.
"While many bears -- those with a more pessimistic outlook -- withdrew from the market, others were more willing to take risks and pick up bargains today," Huang noted.
TSMC, the most heavily weighted stock in the local market, rose 0.95 percent to close at NT$1,085.00 after coming off a low of NT$1,070.00. TSMC's rebound helped the Taiex recoup about 120 points.
Among other tech stocks bargain hunters rushed to buy, United Microelectronics Corp., a smaller contract chipmaker, rose 2.70 percent to end at NT$43.70.
Meanwhile, PC brand Asustek Computer Inc. gained 2.35 percent to close at NT$609.00 and Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., grew 2.18 percent to end at NT$2,580.00.
Also in the electronics sector, which rose 0.82 percent, iPhone assembler Hon Hai Precision Industry Co. rose 0.82 percent to close at NT$184.50 and power management solution provider Delta Electronics Inc. ended up 1.43 percent at NT$425.50.
"Buying in select old economy stocks also helped the broader market to close higher. However, the gains of raw material stocks, such as petrochemicals, were more technical due to recent heavy losses caused by a global supply glut," Huang said.
In the petrochemical industry, which rose 1.04 percent, Formosa Plastics Corp. rose 3.67 percent to close at NT$38.15 and Formosa Chemicals & Fibre Corp. gained 2.71 percent to end at NT$30.35.
Bucking the upturn, the construction industry lost 0.96 percent with Kindom Development Co., down 2.67 percent to close at NT$51.10, and Cathay Real Estate Development Co. was down 1.85 percent to end at NT$23.90.
In the financial sector, which lost 0.38 percent, Fubon Financial Holding Co. lost 0.65 percent to close at NT$91.90, but Cathay Financial Holding Co. rose 0.29 percent to end at NT$68.80.
According to the TWSE, foreign institutional investors bought a net NT$10.42 billion worth of shares on the main board Wednesday.
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