Local market finishes flat ahead of 8,100
CNATAIPEI--Shares in Taiwan closed flat Wednesday as the market remained in consolidation mode ahead of the nearest strong technical resistance level of around 8,100 points, dealers said.
September 5, 2013, 12:01 am TWN
The bellwether electronics sector was faced with downward pressure amid lingering concerns over global demand, while financial stocks continued an uptrend on hopes that the government will relax restrictions on China investment for banks, the dealers said.
The weighted index closed down 4.93 points, or 0.06 percent, at 8,083.44, after moving between 8,041.49 and 8,094.12, on turnover of NT$75.67 billion (US$2.54 billion).
“With turnover falling today, it was unlikely for the local market to climb out of the current doldrums. The local market has been stuck in consolidation mode,” Mirae Asset Management analyst Arch Shih said.
“Many investors remained wary of further volatility in the global equity markets, in particular on Wall Street, as geopolitical factors in the Middle East dampened market sentiment,” Shih said.
Under the current unfavorable circumstances, Shih said, it will not be easy for the local index to breach 8,100 points or stand above that level any time soon.
“For the moment, investors tended to dump their high-tech holdings, which appeared expensive as concerns over falling demand remained in place,” Shih said.
The electronics sub-index fell 0.48 percent, with Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, down 1.47 percent to close at NT$100.50.
Smartphone vendor HTC Corp. fell 7 percent, the maximum daily decline, to end at NT$137.50 as many investors were afraid that the company will fail to reach its third-quarter sales goal of NT$50 billion to NT$60 billion due to stiff competition in the market.