TAIEX trading yesterday opened flat, but closed higher, largely on the strength of electronics stocks, with one analyst optimistic that certain electronics sub-sectors would gain further momentum in the coming months.
The TAIEX ended up 67.78 points, or 0.73 percent, to close at 9,286.28 in Taipei trading, on turnover of NT$81.52 billion (US$2.57 billion).
The electronics subindex closed 0.97 percent higher, helped by electronics heavyweights.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which is the most heavily weighted stock on the exchange, rose 1.81 percent to close at NT$141, while smartphone camera lens producer Largan Precision Co (大立光) closed 3.68 percent higher at NT$2,395.
Taishin Small & Medium Cap Fund (台新中小基金) manager Wang Chung-liang (王仲良) said memorychip stocks will likely gain momentum after the Lunar New Year holiday on Feb. 19, as memorychip prices remained stable during the low season and inventories are now low.
Semiconductor sales should also be strong in the first quarter of next year, Wang said, due to inventories being drawn down by strong sales of consumer gadgets during “Singles Day” in China and over Christmas and the Lunar New Year holiday.
Wang said that the inventory adjustments that have left LEDs and network communications sluggish are nearly over and the revenues of those two sectors should pick up.
Network communications shares in particular, boosted by 4G LTE station installation and strong demand for optical fiber networks in China, are expected to shine next year.
Meanwhile, Wei Chuan Foods Corp’s (味全食品工業) stock prices continued to tumble following an order for Ting Lu Development Co (頂率開發), in which Wei Chuan owns a 51 percent stake, to repay loans of NT$6.5 billion by the end of this year.
Wei Chuan shares opened at NT$24, down 4 percent, but buying soon propped up the price and the stock closed at NT$24.8, down 0.8 percent.
Ting Lu and Wei Chuan are both part of the scandal-ridden Ting Hsin International Group (頂新國際集團), which saw its reputation hammered after cooking oils made by its subsidiaries were found to contain ingredients unfit for human consumption.
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