Local market ends below 8,400 points
CNATAIPEI--Shares in Taiwan closed below 8,400 points Wednesday as the bellwether electronics sector faced downward pressure, with investors pocketing gains they had built up in the sector during the previous session, dealers said.
October 24, 2013, 12:07 am TWN
Market sentiment toward the high-tech sector remained cautious as many investors were anxiously awaiting the results from electronics heavyweights, the dealers said.
Many of the Apple concept stocks failed to react positively to the debut of Apple Inc.'s two new iPads — the iPad Air and the iPad mini 2 — as the functions of the two devices had been widely anticipated by the market, they added.
The weighted index closed down 24.65 points, or 0.29 percent, at 8,393.62, after moving between 8,380.36 and 8,438.95, on turnover of NT$75.87 billion (US$2.58 billion).
The market opened up 1.53 points and moved to the day's high in the wake of gains on Wall Street, and selling followed immediately to drag down the index into negative territory by the end of the session, with the market facing stiff technical resistance at around 8,400 points, the dealers said.
Grand Fortune analyst Chen Wei-tai said the gains in the earlier session simply reflected hopes that the U.S. Federal Reserve will postpone an exit from its massive monthly bond-buying aimed at boosting the economy after Washington reported disappointing non- farm payroll data for September.
“But buying interest in the local market faded amid renewed concerns over electronic companies' bottom lines during the current earnings-reporting season,” Chen said.
Investors Likely to Dump Stocks
“In addition, Apple failed to impress the market with its two new iPads. Many local manufacturers in the Apple chain appeared lackluster,” Chen said.
Among the Apple concept stocks, Hon Hai Precision Industry Co. (鴻海精密), which assembles iPads and iPhones for Apple, fell 0.26 percent to close at NT$75.30, while smartphone camera lens supplier Largan Precision Co. (大立光) lost 0.51 percent to end at NT$982.00.
Taiwan Semiconductor Manufacturing Co. (台積電), the most heavily weighted stock in the local market, which served as an anchor to stabilize the broader market in the previous session, closed down 0.45 percent at NT$111.00.
Asustek Computer Inc. (華碩電腦), one of Taiwan's leading notebook computer vendors, fell 2.00 percent to close at NT$220.00 after local media reported that prosecutors have launched an investigation into an alleged sales scam in which the company is accused of mislabeling its products.
In the financial sector, which closed down 0.80 percent as investors locked in their earlier gains, Fubon Financial Holding Co. (富邦金控) shed 2.34 percent to close at NT$41.75 and Cathay Financial Holding Co. (國泰金控) lost 1.30 percent to end at NT$45.60.
“The local market has been in consolidation mode for some time and even fell below 8,400 points today. That means the market has turned technically weaker,” Chen said.
“I am afraid that investors will lose patience during the current market doldrums and start to dump their stocks to test the nearest support level at around 8,300 points,” Chen said.