Sat, Jan 17, 2009 - Page 11 News List

Taiwanese shares follow Wall Street’s lead higher

SNAPPING A STREAK After falling 4.44 percent on Thursday, the weighted index rose to 4,353.70 after the US bourse ended a string of six consecutive losses

AFP , TAIPEI

Taiwan shares closed up 0.76 percent yesterday after Wall Street ended a string of six consecutive losses, dealers said.

The weighted index rose 32.93 points to 4,353.70, off a low of 4,313.19 and a high of 4,382.43 on turnover of NT$46.84 billion (US$1.41 billion).

For the week, the weighted index fell 113.83 points or 2.55 percent after a 2.69 percent fall a week earlier. Average daily turnover stood at NT$53.48 billion, compared with NT$70.69 billion a week ago.

On Friday, the market opened 1.25 percent higher on Wall Street gains with electronic stocks in focus following their recent heavy losses, dealers said.

But as the weighted moved closer to the strong resistance of the 4,400 to 4,500 point range, upside was compromised amid lingering concerns over a global economic meltdown, they said.

“After Thursday’s steep decline, the market has become technically fragile. That’s why investors took profit after the market staged a rebound,” President Securities (統一證券) analyst Steven Huang said.

The local bourse fell 4.44 percent on Thursday.

“With many investors sidelined, today’s trading volume fell [from Thursday’s NT$54.20 billion] to prevent the market from riding out a consolidation mode,” Huang said.

The electronic sector led the rebound as liquid-crystal-display makers attracted market attention on hopes they can win flat panel TV orders from China, dealers said.

AU Optronics (友達光電) rose 3.61 percent to NT$24.40 dollars and Chi Mei Optoelectronics (奇美電子) added 3.00 percent to NT$10.30.

“Investors tended to buy on hopes. But the industrial fundamentals of the very sector remain weak and we had better keep cautious,” Huang said.

This story has been viewed 1414 times.
TOP top