Taiwan market ends flat in thin trading ahead of Fed meeting
CNATAIPEI--Shares in Taiwan closed little changed in thin trading Tuesday as investors remained on the sidelines ahead of a two-day U.S. Federal Reserve policymaking meeting set to open later in the day, dealers said.
September 18, 2013, 12:11 am TWN
The bellwether electronics sector fell slightly, dragged down by weakness in “Apple concept stocks” after the U.S. consumer electronics giant lost 3.18 percent on Wall Street overnight, they said.
Investors shifted their attention from the high-tech sector to the property sector on hopes that property developers will launch new residential projects to stir up buying in the domestic housing market, they added.
The weighted index closed down 5.56 points, or 0.06 percent, at the day's high of 8,249.78, off an early low of 8,218.94, on turnover of NT$66.66 billion (US$2.24 billion).
The market opened down 0.17 percent as investors pocketed the gains they built a day earlier, and selling that was focused primarily on the electronics sector continued until bargain hunting emerged to recoup most of the earlier losses, dealers said.
“In line with other regional markets, the local market fell into consolidation mode today after yesterday's 1.39-percent gain,” Mega International Investment Services Corp. analyst Alex Huang said.
“Many investors in the region are watching closely what the Fed will decide to do on monetary policy and its ongoing bond buying program,” Huang said.
The equity markets in the region rallied Monday after former U.S. Treasury Secretary Larry Summers withdrew his name from consideration to become the Fed's next chairman.
“Summers' move had psychological effects on the market as many investors worried that he would aggressively tighten liquidity,” Huang said.