Shares edge higher on electronics gains
CNATAIPEI, Taiwan -- Electronics stocks helped shares in Taiwan close in positive territory Monday, but trading volume was the lowest in a single session since late June because of lingering worries over global economic uncertainty, dealers said.
August 27, 2013, 12:04 am TWN
The benchmark index closed up 21.66 points, or 0.27 percent, at 7,894.97, after moving between 7,874.05 and 7,913.74, on turnover of NT$58.02 billion (US$1.94 billion).
The market got a boost from the communications sector, which outperformed the broader market on expectations that a visiting Chinese procurement delegation will place sizable orders with Taiwanese suppliers, dealers said.
The delegation, led by Liu Lihua, vice minister of industry and information technology, arrived in Taiwan Sunday and is expected to source products from Taiwanese companies in the automobile, information technology and telecommunications sectors.
A similar delegation from China last year placed US$220 million in orders in Taiwan, according to the Taiwan External Trade Development Council, Taiwan's main trade promotion body.
The telecommunications sector was especially highlighted because China is set to issue fourth-generation mobile phone service licenses this year, and the delegation will include representatives from China's three biggest telecom operators — China Mobile, China Telecom and China Unicom.
Shares of Microelectronics Technology Inc., which designs and manufactures microwave and satellite communication products, surged 4.88 percent to close at NT$20.40, while shares of wireless communication products maker Wistron NeWeb Corp. rose 2.73 percent to NT$52.60.
Several panel and touch screen manufacturers, meanwhile, saw their shares rise ahead of an industry trade fair, the International Touch Panel and Optical Film Exhibition, which opens Wednesday.
Among touch screen makers, TPK Holding Co. closed 6.83 percent higher at NT$320.5, while Wintek Corp. rose 3.73 percent to close at NT$12.50.
Panel producer Innolux Corp. gained 1.38 percent to end at NT$14.70, and rival AU Optronics Corp. (AUO) finished up 0.43 percent at NT$11.70.
AUO was the most traded stock during the session, and Innolux and Wintek had the third and fourth highest volumes, respectively.
But turnover was still the lowest since a watered-down capital gains tax on stock profits passed the Legislature on June 25, and the sixth-lowest this year.
Dah Chang Securities Co.'s Chang Shih-tung said the shrinking volume reflected investor reservations about increasing their holdings because of uncertainty in the market, despite positive economic data coming out of the United States, Europe and China recently.
According to President Securities Corp., the lack of clarity about when the U.S. Federal Reserve will begin cutting back its stimulus measures is likely to hinder the performance of the U.S. stock market, and as a result adversely affect share prices in Taiwan.
Chang expects the weighted index to fluctuate around the 8,000-point mark in the near future, and he suggested investors pay attention to the moves made by foreign investors.
US Dollar Closes Lower
The U.S. dollar fell against the Taiwan dollar Monday, shedding NT$0.038 to close at NT$30.015. Turnover totaled US$481 million during the trading session.
The greenback opened at the day's high of NT$30.050 and moved to a low of NT$29.948 before rebounding.