Wed, Jan 01, 2014 - Page 14 News List

Shares decline, but stay above Monday’s low mark

Staff writer, with CNA and Bloomberg

Shares retreated yesterday as investors pocketed gains posted a session earlier, but the market’s benchmark index remained above 8,600 points, a mark breached for the first time in more than two years on Monday, dealers said.

The bellwether electronics sector came under downward pressure as investors cut their holdings in some high-tech heavyweights, such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and smartphone camera lens supplier Largan Precision Co (大立光), they said.

The auto sector outperformed the broader market after Yulon Group (裕隆集團) chairman Kenneth Yen (嚴凱泰) on Monday offered an optimistic forecast for car sales in Taiwan this year, they added.

The TAIEX closed down 11.92 points, or 0.13 percent, at 8,611.51, after moving between 8,593.75 and 8,647.24 on turnover of NT$84.47 billion (US$2.82 billion).

For the year, the main board rose 11.85 percent.

Dealers said the market could consolidate for some time to digest downward pressure between 8,600 points and 8,650 points.

Meanwhile, the New Taiwan dollar posted its first annual decline in five years on a cooling economy and as the US Federal Reserve reduces its stimulus, which has driven funds to emerging markets.

The NT dollar fell 2.6 percent last year, the biggest decline since 2005, Taipei Forex Inc prices showed.

It rose 0.3 percent yesterday to end the year at NT$29.950 against the greenback in Taipei on speculation exporters are converting overseas earnings as the year ends.

“Fed tapering means Asian currencies are unlikely to perform well on expectations of a stronger dollar,” said Tarsicio Tong (湯健揚), a Taipei-based currency trader at Union Bank of Taiwan (聯邦銀行). “It’s mainly exporters selling the US dollar today and some companies are repatriating overseas profits back to Taiwan.”

This story has been viewed 1010 times.
TOP top