Fri, May 12, 2017 - Page 1 News List

TAIEX closes at 10,001.48, ends 17-year hiatus

APPLE DRIVER:Hua Nan Securities’ David Chu said that ’the much-anticipated new iPhone is definitely a driver and will continue to shore up the local bourse’

By Crystal Hsu  /  Staff reporter

A couple look at a screen showing stock information at a brokerage in Taipei yesterday.

Photo: CNA

The TAIEX yesterday rose 0.33 percent, or 33.16 points, to close at 10,001.48, above the 10,000-point mark for the first time in 17 years, as heavyweight technology firms in the supply chains of global brands led the way, traders said.

The main index touched the 10,000-point mark in the middle of a session earlier this week and closed above the mark yesterday on continued fund inflows that bet on strong demand for Apple Inc’s next iPhone series.

“The much-anticipated new iPhone is definitely a driver and will continue to shore up the local bourse,” Hua Nan Securities Co (華南永昌證券) chairman David Chu (儲祥生) said by telephone.

Chu declined to speculate on the potential ceiling, saying it is up to foreign institutional players, who increased a net NT$4.09 billion (U$135.4 million) in local shares yesterday.

Overbought positions as of Monday totaled NT$232.6 billion, making Taiwan one of the most favored markets, Hsu said.

Turnover was NT$96.364 billion yesterday on a par with average daily volume this year, Taiwan Stock Exchange (TWSE) data showed. Mutual funds raised their positions by a net NT$137.29 million, while proprietary dealers added a net NT$78 million.

Apple had previously disclosed its suppliers, with 40 local companies on the list.

Shares of Taiwan Semiconductor Manufacturing Co (台積電), which supplies processors for iPhones, rose 0.97 percent to NT$207.5, while Largan Precision Co (大立光), a smartphone camera lens supplier, gained 0.3 percent to NT$4,960, TWSE data showed.

The next-generation iPhones, likely to be released in September, are tipped to have a major redesign as Apple marks the 10th anniversary of the devices.

Of the 10 major TAIEX drivers, eight are Apple suppliers, Goldman Sachs Group Inc said, adding that 42 percent of last year’s revenue for locally listed firms was associated with the US technology giant.

The TAIEX has rallied 8.08 percent this year, lending support to the appreciation in the New Taiwan dollar against the US dollar.

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