Electronics sector leads local shares market higher
The China Post news staff
April 9, 2014, 12:14 am TWN
TAIPEI, Taiwan -- Taiwan Stock Exchange closed up 11.81 points, or 0.13 percent, at 8,888.25 after moving between 8,860.70 and 8,899.12 on turnover of NT$91.18 billion (US$3.01 billion).
With the student-led protests against a trade-in-services agreement with China coming to an end, investors are expected to turn their attention back to fundamentals, analysts told the Central News Agency.
Better-than-expected earnings reports posted by most bellwether companies for March, compounded by recent short sale covering, are expected to push the broader market higher in the short term, Cathay Securities Co. analyst Boryi Chien (簡伯儀) told local media.
Chien added that high-priced electronics stocks, led by Largan Precision Co. (大立光電) and Hermes Microsystem (漢微科), will continue their uptrend amid optimistic market sentiments over their earnings outlook.
As the high-technology stocks enter the second quarter, a traditional slow season for the segment, non-high technology sectors including food and beverages, commodity and plastics are expected to lead the market.
The machinery and electronics sector and construction stocks scored the highest gains among the eight major categories Tuesday, finishing up 0.3 percent.
Largan Precision rose by the daily maximum of 7 percent to close at a record-high of NT$1,595, while Hermes Microvision Inc. ended up 6.18 percent at NT$1,460.
Taiwan Semiconductor Manufacturing Company (台積電) gained 1.28 percent or NT$1.5 to close at NT$119. HTC Corp. (宏達電) yesterday lost 2.51 percent or NT$4 at NT$155.5.
The financial sector also appeared resilient, moving up 0.2 percent. Paper and pulp gained 0.1 percent, while plastics and chemicals ended flat. Textiles lost 0.6 percent, while cement and foodstuff dropped 0.2 percent.