Strong futures trading helps market close above 8,300 pts.
CNATAIPEI, Taiwan -- Shares in Taiwan closed above the 8,300 point mark Thursday as strong futures-led buying was seen across the board, dealers said.
October 4, 2013, 12:17 am TWN
The bellwether electronics sector got a boost from the gains posted by semiconductor stocks such as Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the market, they said.
Old economy stocks, in the particular in the textile sector, moved sharply higher on hopes that local textile makers will enjoy preferential tariff status once Vietnam, where many Taiwanese investors are located, joins the U.S.-led Trans-Pacific Partnership (TPP) trade bloc, dealers said.
The financial sector also trended higher, with large-cap financial holding companies in focus, on expectations that the government will come up with measures shortly to create more business opportunities and strengthen the sector's bottom line, dealers said.
The weighted index ended up 142.50 points, or 1.73 percent, at 8,359.02, after moving between 8,231.68 and 8,376.79, on turnover of NT$114.05 billion (US$3.88 billion).
The market opened up 0.18 percent on a mild technical rebound from the losses in the previous session, and momentum accelerated as large-cap stocks in both the electronics and non-high tech sectors made a significant comeback, helping to vault the index past 8,300 points, dealers said.
“It seemed that investors left behind their concerns over a partial shutdown of the U.S. government and resumed their buying after the market consolidation in the past few sessions,” Concord Securities analyst Kerry Huang said.