Local market ends in consolidation despite US gov't woes
CNATAIPEI -- Shares in Taiwan closed little changed Friday after moving in a narrow range amid lingering concerns over debt ceiling woes in Washington, dealers said.
October 5, 2013, 12:01 am TWN
The bellwether electronics sector fell into consolidation mode after strong gains seen a session earlier, while buying rotated to certain non-high-tech sectors such as cement and construction, but their upside failed to give a significant boost to the broader market, the dealers said.
The weighted index closed up 5.53 points or 0.06 percent at 8,364.55 after fluctuating between 8,336.61 and 8,376.06 on turnover of NT$91.27 billion (US$3.10 billion).
The market opened down 0.16 percent and the index then seesawed between losses incurred by the high-tech sector and gains posted by certain old economy stocks throughout the session, the dealers said.
Turnover fell to some extent as investors adopted a wait-and-see attitude, watching closely how Washington will solve the debt limit problems by mid-October, they said.
“So far, I still have hopes that the U.S. government and Congress will reach consensus to raise the debt ceiling by mid-October,” KGI Securities analyst Eason Lee said. “But before any agreement comes out, the global financial markets will continue to see some volatility.”
Lee said fears over a failure for the U.S. to raise its debt obligations were raised by a warning issued by the U.S. Department of Treasury that a default on U.S. debt obligations could lead to a recession. The Down Jones Industrial Average fell below 15,000 points overnight.