Bellwether electronics sector leads local rebound
April 30, 2014, 12:01 am TWN
TAIPEI, Taiwan -- Taiwan shares continued to rebound Tuesday, led by the bellwether electronics sector.
The weighted index on the Taiwan Stock Exchange closed up 62.40 points, or 0.7 percent, at 8,872.11 after moving between 8,833.37 and 8,884.48 on turnover of NT$92 billion (US$3.05 billion). On Monday, the index closed up 35.59 points.
Electronics stocks gained 0.88 percent, with major companies such as Taiwan Semiconductor Manufacturing Co. (台積電), United Microelectronics Corp. (聯電), Siliconware Precision Industries Co. (矽品精密), Acer Inc. (宏碁電腦) and Hon Hai Precision Industry Co. (鴻海精密) all moving up.
The old economy sector also made a strong showing, with textile stocks rising 1.08 percent to emerge as the best performers. Financial shares, meanwhile, climbed 0.35 percent.
Foreign institutional investors sold a net NT$1.44 billion in shares Tuesday, ending their 26-day buying streak.
During the 26 trading sessions between March 21 and April 28, foreign institutional investors bought a net NT$137.58 billion worth of shares. It was the third longest buying streak by foreign institutional investors in the local market since 2000.
Stocks See Little Impact on Nuke 4 Issue
The government's Sunday decision to suspend work on the controversial Fourth Nuclear Power Plant continued to cause little impact on the local market Tuesday as the main index of the Taiwan Stock Exchange closed up for a second day.
The financial market did not respond immediately because protests against the plant have been driven more by political considerations than economic ones, according to Wu Dachran, head of the Research Center for Taiwan Economic Development at National Central University.
Nuclear energy safety has become a major concern in Taiwan after the Fukushima Daiichi nuclear disaster in Japan in 2011, Wu said.
The decision to halt construction on the nearly completed plant was expected because the government recognizes the seriousness of the situation and the difficulty involved in pushing the power plant forward, he said.