Local market ends lower in consolidation mode following recent heavy losses
August 16, 2014, 12:02 am TWN
TAIPEI -- Shares in Taiwan trended lower on thin turnover Friday as the local market remained in consolidation mode after recent heavy losses, dealers said.
The weighted index on the Taiwan closed down 23.80 points, or 0.25 percent, at 9,206.81, after moving between 9,172.91 and 9,243.67, on turnover of NT$70.67 billion (US$2.36 billion).
Market Doldrums Remain
Although Wall Street posted gains overnight, there were still fears over further volatility that could be triggered by the geopolitical tensions related to Ukraine, Hua Nan Securities analyst Stan Chang said.
"Trading is expected to continue in a narrow range over the next few sessions, remaining quiet and even boring," Chang said.
The market opened up 0.14 percent at the day's high on a mild technical rebound but selling set in, focusing on notebook computer stocks, and the index fell into negative territory, dealers said.
For the rest of the session, the local market continued to move below its previous closing level but the losses were capped after the index briefly breached the 9,200-point mark, dealers said.
"Look at the thin turnover. Many investors preferred to stay on the sidelines, waiting for fresh leads, so the local equity market remained in consolidation throughout the session," Chang said.
The bellwether electronics sector remained weak as selling focused on contract notebook computer makers after the biggest among them, Quanta Computer Inc. (廣達電腦), reported a more than 10-percent sequential decline in its second-quarter net profit, dealers said.
Selling was also seen in the non-high tech sector amid cautious market sentiment toward the global equity markets due to uncertainty over the geopolitical climate, they added.