Market ends higher; HTC keeps losing steam
The China Post with CNATAIPEI, Taiwan -- Shares in Taiwan closed higher to stand above 8,100 points as gains on Wall Street overnight encouraged investors here to buy throughout the session, dealers said.
September 6, 2013, 12:02 am TWN
The bellwether electronics sector staged a technical rebound in reflection of the latest gains posted by the tech-heavy NASDAQ index, but smartphone vendor HTC Corp. continued to lose steam after the company reported disappointing sales data for August, the dealers said.
The local market's strength stopped ahead of 8,200 points, the nearest technical resistance level, however, as market sentiment remained cautious about a possible tapering off of massive bond-buying by the U.S. Federal Reserve and a likely U.S. military strike against Syria, they added.
The weighted index closed up 85.66 points, or 1.05 percent, at the day's high of 8,169.10, from an earlier low of 8,107.22, on turnover of NT$92.46 billion (US$3.11 billion).
The market opened up 0.32 percent in a knee-jerk reaction to the U.S. market gains, and momentum continued as high-tech stocks benefited from foreign institutional buying, the dealers said.
Buying also spread to old economy stocks, in particular cement, food and textile makers, on their relatively low valuations to push up the local market to the day's high at the end of the session, they added.
Three Major Institutional Investors Buy NT$11.377 Bil.
“Judging from today's gains, I suspect that foreign institutional investors maintained buying to cover their previous short positions,” said Concord Securities analyst Kerry Huang.