Sat, Jan 21, 2017 - Page 12 News List

Taiwan shares gain ahead of US inauguration

Staff writer, with CNA

Taiwanese shares closed slightly higher yesterday amid cautious sentiment, with many investors choosing to remain on the sidelines ahead of the inauguration of Donald Trump as US president, dealers said.

Shares of select large cap stocks in the Apple Inc supply chain, in particular smartphone camera lens supplier Largan Precision Co (大立光), staged a technical rebound from a slump in the previous session, lending support to the broader market throughout the day, they said.

The TAIEX closed up 13.34 points, or 0.14 percent, at 9,331.46 on turnover of NT$66.93 billion (US$2.12 billion), Taiwan Stock Exchange (TWSE) data showed.

The TAIEX opened up 8.68 points as shares bounced back from a 0.26 percent fall on Thursday and fluctuated in a narrow range throughout the session, dealers said.

“Look at Wall Street overnight. I think the global financial markets are watching closely what Trump is going to say in his inauguration speech,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang (黃國偉) said. “More importantly, global markets have turned cautious about what economic policies Trump will lay out in the first 100 days after he is sworn in.”

Overnight, the Dow Jones Industrial Average posted a fifth consecutive losing session, declining 0.37 percent, while some economic data beat estimates, including housing starts, which soared 11.3 percent last month.

“Taiwan cannot isolate itself from the global markets. It was no surprise that we had another boring day today,” Huang said. “Local investors simply want to know how Wall Street will react after Trump’s speech and then map out their investment strategies.”

The silver lining was that select high-tech stocks trended higher, lifting the broader market, Huang said.

“In particular, Largan’s gains contributed to the upturn since many investors remain optimistic about its fundamentals,” he said.

Largan rose 2.21 percent to close at NT$4,390 after a 3.37 percent fall on Thursday.

Catcher Technology Co (可成), a metal casing supplier to Apple, gained 4.3 percent to end at NT$242.0, while Taiwan Semiconductor Manufacturing Co (台積電), which is believed to make the A10 processor for the latest iPhones, gained 0.28 percent to close at NT$181.

Bucking the trend, Hon Hai Precision Industry Co (鴻海), an assembler of iPhones and iPads, fell 0.12 percent to end at NT$83.40.

In the non-tech sector, Cathay Financial Holding Co (國泰金控) rose 0.64 percent to close at NT$47.15 and Fubon Financial Holding Co (富邦金控) gained 0.6 percent to end at NT$50.50. Meanwhile, Formosa Plastics Corp (台塑) added 0.57 percent to close at NT$88.50.

“I expect the weighted index will face strong technical resistance as it moves closer to 9,350 points, so there is limited room for local shares to go higher and it is time for investors to lower their holdings,” Huang said.

However, in the event of any correction, the TAIEX is likely to see technical support at 9,150 to 9,200 points in the near term, he added.

Foreign institutional investors bought a net NT$2.51 billion worth of shares on the main board yesterday, TWSE data showed.

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