Tue, Jul 05, 2016 - Page 12 News List

Taiwanese shares rise, but fall short of 8,800 points

Staff writer, with CNA

Taiwanese shares closed up yesterday, but the gains were capped ahead of the psychological 8,800-point level as investors cautiously took to the sidelines, dealers said.

Interest in select tech stocks, especially in the semiconductor and optoelectronics sectors, continued from the previous session, while buying rotated to old economy stocks, such as cement, steel and auto suppliers, lending support to the broader market, dealers said.

The weighted index ended up 22.34 points, or 0.26 percent, higher at 8,760.58, after moving between 8,712.12 and 8,782.38, on turnover of NT$69.65 billion (US$2.16 billion).

Yesterday’s closing level was the highest since March 23, when the index ended at 8,766.09 points.

The market opened down 0.11 percent and fell to the day’s low as investors locked in their recent gains amid a fading impact of Britain’s decision to leave the EU, dealers said.

However, as the index moved closer to 8,700 points, buying reemerged, focusing on select large-cap stocks, which helped push the broader market back into positive territory until the end of the session, dealers said.

“The local main board had been steaming ahead in the previous four sessions and continued its momentum today as the Brexit effects have dimmed, but when the index approached 8,800 points, some investors took a break, limiting the upturn at the close today,” Capital Management Corp (統一投顧) equity analyst Vickie Hsieh (謝雯霞) said, referring to the reduced turnover.

“Unless trading volume expands to NT$100 billion or higher, it will not easy for the weighted index to hold above that level,” Hsieh said.

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