Share prices close lower
The TAIEX closed down 0.13 percent yesterday as profit-taking reversed early gains, dealers said.
The TAIEX fell 10.74 points to 7,701.29 after moving between 7,678.30 and 7,752.80 on turnover of NT$101.52 billion (US$3.15 billion).
The market opened 0.39 percent higher with buying triggered by optimism toward the global high-tech outlook after a Wall Street comeback and Apple’s best-ever second quarter profits, dealers said.
However, investors started pocketing profits, eroding the early gains by unloading select large-cap electronics stocks and financial heavyweights after the index moved to the day’s high, they said.
“Technically speaking, the market remained in a consolidation mode. Whenever it posted gains, profit-taking followed,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said.
Shih said the overnight rally on Wall Street paved the way for selling in the second half of the trading session.
“It was a good time for investors to take profits. Without any fresh leads, this pattern is expected to repeat itself in the near term,” Shih said.
While Apple reported its robust second quarter earnings, selling in the local bourse focused on select large-cap stocks after their recent significant gains, Shih said.
“As the index hovered around the technical resistance level of 7,700 points, many investors were unwilling to chase prices to further boost high-tech stocks,” he said.
FSC bureau rejects Tatung plan
Tatung Co’s (大同) capital reduction plan was rejected by the Financial Supervisory Commission’s Securities and Futures Bureau, the regulator said in a statement on its Web site on Tuesday.
The Chinese-language Commercial Times reported yesterday that the bureau hasn’t yet approved the company’s plan to cut its capital by NT$32.134 billion.
Tatung is required to submit more documents regarding the capital reduction plan within a grace period of 12 days before the bureau can decide whether it will grant approval, the report said.
Arima sets share price
Arima Communications Corp (華冠) set the reference price on a private placement of shares at NT$11.10, it said in an exchange filing yesterday.
The communications-equipment maker’s board approved plans to sell up to 41 million shares through a private sale, it said in the filing.
Hu plugs Taichung produce
Taichung City Mayor Jason Hu (胡志強) said yesterday that Malaysia’s government could help market agricultural produce from Taichung in the Middle East and share in the profits.
Hu and Taichung County magistrate Huang Chung-sheng (黃仲生) left for Malaysia on Tuesday to promote agricultural produce, hoping to expand markets in Southeast Asia and open new ones in the Middle East.
At a press conference in Kuala Lumpur yesterday, Hu said that the Malaysian government would like to help Taichung’s agricultural specialties obtain Halal certification — allowing Muslims to eat or drink the products.
“Although Taichung’s sun cakes are popular, they still need to be Halal-certified to enter Muslim markets,” Hu said.
Officials said sun cake manufacturers did not need to set up factories in Malaysia to be certified, but could establish Halal certification services in Taichung.
NT dollar weakens slightly
The New Taiwan dollar yesterday gained by NT$0.005 to close at NT$32.150 against the greenback on turnover of US$523 million.
The greenback opened at NT$32.155 and moved between NT$32.105 and NT$32.184 before the close.
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