Shares in Taiwan closed moderately higher yesterday, as investors shifted to the sell side, pocketing their gains after the main board breached 13,700 points in the early morning session.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came off its high from the previous session, leading the broader market in giving up most of its earlier gains, while smaller tech stocks came under pressure after strong showings recently, dealers said.
The TAIEX ended up 41.18 points, or 0.3 percent, at an all-time record of 13,593.01. Turnover totaled NT$234.684 billion (US$8.14 billion) during the session, with foreign institutional investors buying a net NT$15.099 billion of shares on the main board, Taiwan Stock Exchange data showed.
“After the solid gains on Monday and early Tuesday, many investors were locking in their profits,” Hua Nan Securities Co (華南永昌證券) analyst Lu Chin-wei said. “TSMC, however, still managed to end above its previous close, despite the profit-taking.”
TSMC, the most heavily weighted stock on the local market, rose 0.31 percent to close at NT$485.5, after hitting the day’s high of NT$506. After soaring 4.76 percent on Monday, TSMC saw a 6.49 percent gain in its American depositary receipts overnight, and the stock breached NT$500 early in yesterday’s session.
“The NT$500 mark appears to be the stock’s ceiling at the moment,” Lu said.
As the electronics sector became lackluster, investors shifted their attention to the tourism industry, encouraged by news of potential COVID-19 vaccines, dealers said.
Other old-economy stocks appeared mixed, while the financial sector benefited from late-session buying, rising 0.21 percent to lend some support to the broader market, they added.
“After falling short of 13,700 points at the close, the TAIEX is likely to face some volatility down the road, but there could be some good buying opportunities as the index moves closer to a 20-day moving average of about 13,000 points,” Lu said.
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