Taiwan shares end up slightly after profit-taking erodes gains
January 17, 2014, 12:09 am TWN
TAIPEI, Taiwan -- Shares in Taiwan finished slightly higher Thursday after investors locked in their earlier gains, capping the uptrend by the end of the session, dealers said.
While the old economy sector encountered downward pressure, the bellwether electronics sector, led by large-cap stocks such as Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) and Hon Hai Precision Industry Co. (鴻海精密), helped the broader market move up from the previous close, they said.
The weighted index of the Taiwan Stock Exchange closed up 9.56 points, or 0.11 percent, at 8,612.11 after fluctuating between 8,610.24 and 8,668.95 on turnover of NT$108.27 billion (US$3.61 billion).
The market opened up 0.59 percent and rose to the day's high in the wake of an overnight rally on Wall Street after the World Bank raised its forecast for global economic growth to 3.2 percent from 3 percent, dealers said.
Buying focused on select electronics heavyweights throughout the session to offset selling, which emerged in the late session to push down most old economy stocks, they said.
“Since the index breached the 8,600-point mark yesterday, the local market has faced stiff technical resistance,” Concord Securities analyst Kerry Huang said. “I am not surprised that the gains were capped by the end of the session.”
Huang said the bellwether electronics kept moving higher after the local market opened on the back of the gains posted by high-tech heavyweights.
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