Thu, Jan 22, 2009 - Page 11 News List

Taipei shares edge up on large-cap bargain-hunting

TECHNICAL FACTORS Bargain hunters emerged in late trading to boost electronic heavyweights as the Taipei market closed until Feb. 2 for the Lunar New Year break

AFP , TAIPEI

Taiwanese share prices closed up 0.13 percent yesterday after bargain hunting on large-cap stocks reversed early losses following an overnight Wall Street plunge, dealers said.

The weighted index rose 5.36 points to 4,247.97, off a low of 4,164.19 and a high of 4,265.33, on turnover of NT$49.02 billion (US$1.46 billion).

Losers outnumbered gainers by 908 to 561 with 264 stocks unchanged.

The market opened down 1.84 percent, led by financial stocks after investors witnessed the dismal performance of Wall Street overnight.

However, the downside was reversed as bargain hunters emerged in late trading to boost electronic heavyweights, including Taiwan Semiconductor Manufacturing Co (台積電) and notebook manufacturer Quanta Computer Inc (廣達電腦).

While concerns over the global and domestic economic conditions continued to haunt market sentiment, the local bourse did benefit from technical factors, President Securities (統一證券) analyst Vickie Hsieh (謝雯霞) said.

“[Tuesday’s] 2.84 percent fall paved the path for today’s bargain hunting. After recent heavy losses, many large-cap stocks appear attractive in terms of their low valuations,” Hsieh said.

As many listed companies are scheduled to hold their shareholder meetings next month and in March, major company ­shareholders were more willing to buy stocks to enhance their voting power, Hsieh said.

“I also suspect the government stepped in to support the market on the last trading session before the Lunar New Year. Market gains symbolized good luck,” Hsieh said.

The local market is now closed for the Lunar New Year holiday and reopens on Feb. 2.

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