Shares rose generally higher in the nation yesterday, as gains in the steel and electronics sectors more than offset a tumble in chemical shares triggered by a series of gas pipeline explosions that rocked Greater Kaohsiung last week.
The TAIEX closed up 63.68 points, or 0.69 percent, at 9,330.19 on turnover of NT$87.54 billion (US$2.92 billion). It was only the second time in the past seven sessions that the benchmark index has finished in positive territory.
The TAIEX would likely have finished higher had it not been for the chemical and plastics sectors, which fell 2.48 percent and 1.94 percent respectively, amid fears that the blasts would curtail the supply of basic raw materials in the two industries.
Shares of LCY Chemical Corp (李長榮), which Greater Kaohsiung authorities have implicated in the blasts that killed at least 28 people and hurt more than 300 on Thursday and Friday last week, opened down by the maximum 7 percent daily limit to NT$21.65 and did not budge for the rest of the session.
Several other chemical stocks, such as USI Corp (台聚), China General Plastic Corp (華夏), Asia Polymer Corp (亞聚), Taita Chemical Co (台達化), Grand Pacific Petrochemical Corp (國喬) and China Petrochemical Development Corp (中石化), also fell over supply concerns.
Even the Formosa Plastics Group (台塑集團), which has its own materials supply mechanism and was not implicated in the explosions, felt the blasts’ shockwaves.
Among its main subsidiaries, Formosa Plastics Corp (台塑) fell 1.96 percent to NT$75.20, Nan Ya Plastics Corp (南亞塑膠) lost 2.46 percent to close at NT$67.40 and Formosa Chemicals and Fibre Corp (台灣化纖) shed 0.41 percent to NT$72.30.
The financial sub-index fell 0.30 percent amid investor concerns over potential bad debts hanging over the sector in the future.
Among the day’s winners, the cement and steel sub-indices rose 1.67 percent and 1.41 percent respectively, in anticipation of the potential opportunities created by the need to rebuild the parts of Greater Kaohsiung torn apart by the powerful explosions.
Electronics stocks also recorded strong gains, buoyed by anticipated back-to-school demand for electronic devices, with the sector’s sub-index rising 1.66 percent.
Compal Electronics Inc (仁寶) surged by the maximum 7 percent to close at NT$29.40, Quanta Computer Inc (廣達) rose 4.47 percent to NT$84.10 and Wistron Corp (緯創) gained 3.87 percent to NT$29.65.
Taiwan Semiconductor Manufacturing Co (台積電) rose 2.92 percent to close on NT$123.50, while Hon Hai Precision Industry Co (鴻海) gained 3.43 percent NT$105.50.
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