Local market ends slightly higher in consolidation mode
CNATAIPEI, Taiwan -- Shares in Taiwan closed slightly higher Thursday after moving in consolidation mode throughout the session as Wall Street failed to give a clear indication to investors here, dealers said.
September 13, 2013, 12:06 am TWN
The bellwether electronics sector remained weak, led by Apple concept stocks, due to disappointment with the two new iPhones unveiled by the U.S. consumer electronics giant. Old economy stocks, in particular auto makers, attracted rotational buying to lend support to the index, the dealers said.
The upside on the broader market was capped amid lingering concerns over a possible move by the U.S. Federal Reserve to scale back its massive monthly stimulus measures, they added.
The weighted index closed up 16.37 points, or 0.19 percent, at 8,225.36, after fluctuating between 8,177.03 and 8,226.61, on turnover of NT$86.96 billion (US$2.93 billion).
The market opened down 0.35 percent as investors took cues from a mixed Wall Street overnight, and seesawed between selling in the high-tech sector and buying in the old economy sector, the dealers said.
As the market faced stiff technical resistance after breaching 8,200 points, its gains were capped with the index closing slightly higher at the end of the session, they said.
Concord Securities analyst Kerry Huang said the local market remained stuck in ranged trade on a lack of fresh leads.
“I think the impact from the political turmoil related to Legislative Yuan Speaker Wang Jin-pyng faded to some extent, but market attention has shifted back to economic factors, in particular the next move by the U.S. Fed,” Huang said.