Local shares staged a technical rebound yesterday as “Apple concept stocks” moved higher ahead of the cheaper iPhone XR going on sale worldwide later this week, dealers said.
While the bellwether electronics sector was behind the latest rebound, old economy and financial stocks were mixed, with many investors staying on the sidelines, ensuring turnover remained moderate, they said.
The TAIEX closed up 55.02 points, or 0.55 percent, at 9,974.28 points on turnover of NT$100.76 billion (US$3.26 billion).
The market opened down 0.48 percent on follow-through selling from Friday and fell further to the day’s low in the early morning session, but with the main board moving closer to 9,800 points, some bargain-hunters emerged, picking up “Apple concept stocks,” such as chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and smartphone camera lens supplier Largan Precision Co (大立光) to push the broader market back into positive territory by the end of the session.
“Buying of these Apple suppliers reflected optimism over sales of the iPhone XR,” which are due to start on Friday, Xincheng International Investment Consultant (信誠環球投顧) analyst Chang Chih-cheng (張志誠) said.
“Due to its relatively affordable price, the iPhone XR is expected to become the most popular of the three newest iPhone models and that expectation encouraged investors to buy Apple concept stocks,” Chang said.
TSMC rose 0.42 percent to close at NT$237, Largan added 2.64 percent to NT$3,505, while metal casing maker Catcher Technology Co (可成) rose 0.8 percent to NT$315.
Technical resistance remained strong at 10,000 points, so the market was still moving in consolidation mode, despite the gains, Chang said.
“Many investors are reluctant to chase prices for the moment as they remain concerned the [US] Federal Reserve could accelerate the speed of its rate hike cycle with the US economy so strong,” Chang said. “More importantly, investors have been anxiously watching for when foreign institutional investors will resume large buying after recent sell-offs.”
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion