Little changes in local market, ends flat ahead of 8,300 points
CNATAIPEI--Shares in Taiwan closed little changed on Tuesday after fluctuating in a narrow range ahead of strong technical resistance at around 8,300 points, dealers said.
September 25, 2013, 12:08 am TWN
While investors pocketed gains posted earlier in the “old economy” and financial sectors, the bellwether electronics sector, led by Apple concept stocks, helped the broader market end in positive territory, the dealers said.
Largan Precision Co., which supplies smartphone camera lenses to Apple and is the most expensive stock in the local market, returned to NT$1,000 (US$33.78) after the U.S. consumer electronics giant Apple reported better-than-expected sales of its new iPhones after their first weekend on the market, they added.
The weighted index closed up 6.29 points, or 0.07 percent, at 8,299.12, after moving between 8,310.94 and 8,265.55, on turnover of NT$80.22 billion.
The market opened up 2.67 points and rose to the day's high on follow-through buying from the 1.01 percent gains posted a session earlier, the dealers said.
Selling emerged, however, to erode the earlier gains by the end of the session as investors locked in their profits by taking cues from overnight weakness on Wall Street, they said.
“Look at Wall Street's losses. I think concerns over the debt ceiling in Washington returned to haunt investors,” said Mega International Investment Services Corp. analyst Alex Huang.
“Many investors here rushed to take profits amid fears that further volatility in the U.S. market will cause more losses in the local market in case of a government shutdown in the U.S.,” Huang said.
The analyst said most of the traditional industrial and financial stocks fell victim to concerns over a volatile Wall Street, with Taiwan Cement down 0.95 percent to close at NT$41.50 and E. Sun Financial Holding Co. down 3.19 percent to end at NT$19.75.
Apple Concept Stocks Get a Boost with New iPhone Sales
“Fortunately, the high-tech sector got a boost from the gains posted by Apple concept stocks. Otherwise, the index could have trended lower today,” Huang said, referring to the 1.51 percent gains posted by Largan after Apple said the first weekend sales of its two new iPhones — the iPhone 5S and the iPhone 5C — topped 9 million units, beating an earlier market estimate of 6 million to 8 million units.
Among other rising local manufacturers in the Apple supply chain, metal casing supplier Catcher Technology Co. added 1.58 percent to close at NT$161.00, and Hon Hai Precision Industry Co., which assembles iPhones and iPads for Apple, ended up 0.92 percent at NT$76.90.
“But I remain cautious about future sales of the two new iPhones. It is too early to say whether strong demand will continue simply based on the first weekend sales,” Huang said.
United Microelectronics Corp. rose 3.57 percent to close at NT$13.05 after a local media report said the company has secured large orders from integrated circuit designer MediaTek.