Local market remains within slim range amid uncertainties
CNATAIPEI--Shares in Taiwan moved within a narrow range before closing slightly higher Tuesday amid uncertainty over how an alleged influence peddling case involving Legislative Speaker Wang Jin-pyng will evolve, dealers said.
September 11, 2013, 12:11 am TWN
Despite the narrow trading range, buying in Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, helped stabilize the broader market.
Investors backed the stock on expectations that the contract chip maker will report strong sales results in August, dealers said.
Bargain hunters focused on notebook computer stocks after personal computer vendor Asustek Computer Inc. reported a double-digit increase in sales for August on the back of peak season effects, dealers said.
HTC Corp. staged a technical rebound after the company said a day earlier that it has spent NT$356 million (US$11.98 million) to buy back 2.70 million HTC shares under a share repurchasing program to buy 15 million shares between Aug. 5 and Oct. 4, dealers said.
The weighted index closed up 16.66 points, or 0.20 percent, at 8,208.77, after moving between 8,155.87 and 8,238.91, on turnover of NT$88.70 billion.
The market opened up 0.31 percent and moved to the day's high in a knee-jerk reaction to a rebound on Wall Street overnight, dealers said.
But profit-taking emerged to erode some of the early gains on fears that the Wang case would escalate and affect the local political climate.
“As Wang will return from Malaysia to Taiwan tonight, many investors were waiting to see how he will respond to an accusation that he was peddling his influence in a legal case,” Ta Ching Securities analyst Andy Hsu said yesterday.
The allegations against Wang surfaced Friday, when he was in Malaysia for his daughter's wedding.
President Ma Ying-jeou issued a strongly worded statement Sunday condemning Wang's alleged efforts to get high-ranking judicial officials to get a prosecutor in charge of a breach of trust case not to appeal a High Court verdict.
The case involved opposition Democratic Progressive Party Legislator Ker Chien-ming, who was found not guilty by the High Court after two previous guilty verdicts.