Local market lifted by Wall Street momentum
CNATAIPEI--Shares in Taiwan got a boost Wednesday after Wall Street staged a technical rebound overnight when investors reacted calmly to a partial shutdown of the American government, dealers said.
October 3, 2013, 12:11 am TWN
Buying in Taipei focused on select old economy stocks, in particular in the plastics sector, which has close business ties with mainland China. The bellwether electronics sector remained in the doldrums, however, as investors anxiously awaited September sales data, they said.
The weighted index closed up 29.50 points, or 0.36 percent, at 8,216.52, after moving between 8,204.34 and 8,228.81, on turnover of NT$78.52 billion (US$2.66 billion).
The market opened up 0.35 percent and rose to the day's high in a reaction to the gains posted by Wall Street overnight as investors shrugged off the government shutdown in Washington, dealers said.
But profit-taking had set in by the end of the session to limit the gains as investors were reluctant to chase prices, preferring instead to wait and watch where Wall Street heads in the near future, they said.
“Many expect the government shutdown problems in Washington to be solved quickly,” Hua Nan Securities analyst Henry Miao said. “In fact, despite the partial government closure, economic activity remains normal.”
Though the local market edged higher, Miao said, the market still traded within a narrow range amid concerns over further volatility in the U.S. market related to a looming debt ceiling battle.