Local market bounces back on eased Ukraine tension
March 6, 2014, 12:10 am TWN
TAIPEI--Shares in Taiwan staged a technical rebound Wednesday as investors were encouraged by rallies on Wall Street and European markets overnight on the back of eased tension in Ukraine, dealers said.
The bellwether electronics sector led the broader market in moving higher as certain large-cap stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC,台積電) and Quanta Computer Inc. (廣達電腦), got boosts from bargain hunters, the dealers said.
However, the financial sector underperformed the broader market amid lingering concerns that bank profitability will be squeezed by a government plan to raise the sales tax, they added.
The weighted index on the Taiwan Stock Exchange closed up 78.39 points, or 0.91 percent, at 8,632.93, after moving between 8,622.19 and 8,652.22 on turnover of NT$102.18 billion (US$3.37 billion).
The market opened up 0.79 percent to stand above the 8,600 point mark in a knee-jerk reaction to gains posted by the global equity markets, and momentum continued as the high-tech sector steamed ahead, the dealers said.
However, as the index briefly breached 8,650 points, some investors shifted to the sell side to pocket their gains, capping the uptrend at the end of the session, they said.
"Although some electronics heavyweights bounced back from recent weakness, some investors appeared reluctant to chase prices," Mega International Investment Services Corp. analyst Alex Huang said.
Low Turnover Helds Back Investors from Chasing Price
"They had fears over a possible pullback as the index touched the nearest technical resistance level at around 8,650 points," Huang said.