Shares in Taiwan closed higher for the eighth consecutive trading session yesterday, buoyed by investor optimism over the pending acquisition of Sharp Corp by Hon Hai Precision Industry Co (鴻海精密).
The market’s benchmark index slumped in the first 70 minutes of trading, falling below the 8,600-point mark because of a decline in China’s stock market, but it rebounded steadily the rest of the session on the strength of Hon Hai shares.
The index finished up by 4.76 points, or 0.05 percent, at 8,664.31 yesterday on turnover of NT$105.5 billion (US$3.19 billion).
Trading ranged between a high of 8,668.51 and a low of 8,575.70.
Hon Hai closed 1.72 percent higher at the day’s high of NT$83.0 with 35.4 million shares changing hands, outperforming the 0.18 percent gain by the market’s electronics sub-index.
Smartphone maker HTC Corp (宏達電) saw its momentum slow yesterday after two consecutive sessions in which it rose by the 10 percent daily maximum.
The stock soared to an early high of NT$103 before retreating and finishing down 0.91 percent for the day at NT$98.1.
Analysts said the eight-session winning streak could be attributed to strong liquidity and good fundamentals.
The market has moved well above the six-month moving average of 8,308 for this month and is now heading toward the 8,871 high seen in the fourth quarter last year, President Securities Corp (統一證券) said.
The market could face technical resistance as it heads toward that mark, the firm said, adding that key factors to watch in the near future were whether foreign institutional investors would continue to buy, the impact of the New Taiwan dollar’s appreciation on domestic demand for shares and the rising prices of raw materials.
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