Taiwan shares edge up in thin turnover

Taipei, Dec. 27 (CNA) Shares in Taiwan closed slightly higher Friday as turnover stayed low with many foreign institutional investors still away from the market for the New Year's holiday, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark weighted index, ended up 28.74 points, or 0.12 percent, at 23,275.68 after moving between 23,204.35 and 23,335.66. Turnover totaled NT$285.80 billion (US$8.74 billion).

The market opened up 4.34 points and traded in a narrow range the rest of the session as U.S. markets failed to provide any indication of which way the market should move, dealers said.

Turnover fell below the NT$300 billion level, but select large-cap stocks in both the electronics and non-tech sectors appeared resilient, helping the broader market end above the previous close, dealers said.

"With limited foreign institutional participation during the holiday season, the local stock market has stayed quiet in recent sessions, drifting without direction," Mega International Investment Services Corp. analyst Alex Huang said.

"Fortunately, certain heavyweights across the board still attracted some buying today to allow the Taiex to float above yesterday's close," Huang said.

Among the large-cap stocks in the bellwether electronics sector, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, gained 0.46 percent to close at NT$1,090.00.

"With the stock moving closer to a historical high of NT$1,100.00 (seen on Oct. 18), stiff technical resistance kept it from taking off," Huang said.

Smartphone IC designer MediaTek Inc. closed 0.70 percent higher at NT$1,430.00, and power management solution provider Delta Electronics Inc. rose 0.82 percent to close at NT$431.50.

Second to TSMC in terms of market value, iPhone assembler Hon Hai Precision Industry Co. lost 0.53 percent to end at NT$186.50.

Led by TSMC, the electronics index rose 0.30 percent and the semiconductor sub-index gained 0.44 percent.

"In addition to the tech sector, select stocks in the financial and old economy sectors also moved higher to provide additional support to the Taiex, but their gains were capped," Huang said.

With the financial sector up 0.14 percent, Cathay Financial Holding Co. rose 0.87 percent to close at NT$69.30, and Fubon Financial Holding Co. added 0.55 percent to end at NT$91.80, while CTBC Financial Holding Co. closed unchanged at NT$39.45.

In the old economy sector, Formosa Plastics Corp. rose 0.27 percent to close at NT$37.00, and Nan Ya Plastics Corp. gained 0.32 percent to end at NT$31.00.

In addition, Eclat Textile Co. added 0.39 percent to close at NT$509.00, and Far Eastern New Century Corp. rose 0.79 percent to end at NT$31.80.

Bucking the upturn, Kindom Development Co. lost 1.74 percent to close at NT$50.90, and King's Town Construction Co. ended down 3.46 percent at NT$67.00.

"Quiet trading is likely to continue before foreign investors return to the market after the New Year's holiday," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$5.48 billion in shares on the market Friday.