Local market ends up; Largan shares hit NT$2,000
The China Post news staff
May 7, 2014, 12:05 am TWN
TAIPEI, Taiwan -- Shares in Taiwan closed higher Tuesday as buying focused on Largan Precision Co. (大立光電), which hit a high of NT$2,000 (US$66.39) at the close after the smartphone camera lens maker reported an increase in sales for April, dealers said.
The weighted index on the Taiwan Stock Exchange ended up 41.96 points, or 0.47 percent, at 8,912.39, after moving between 8,853.72 and 8,927.39 on turnover of NT$100.57 billion.
Market Turns Technically Healthier
"Thanks to the success of the broader market closing above 8,900 points today after jumping over stiff resistance ahead of that level, the market has turned technically healthier," President Securities analyst Vickie Hsieh told the Central News Agency (CNA).
"The market is approaching the next strong technical resistance ahead of 9,000 points, so I expect many investors will become reluctant to chase prices over the next few sessions amid fear of a major pullback," Hsieh said.
"The index is expected to continue to move in a narrow range and even if there is any uptrend, the gains will be limited," she said.
Largan was among the spotlighted stocks in the trading session after the company reported a day earlier that its consolidated sales in April rose 14 percent from a month earlier and 68 percent from a year earlier to NT$3.21 billion, a record high in the company's history.
The stock closed up 1.01 percent to close at NT$2,000 for the first time, refreshing the record of the most expensive stock in Taiwan set by the same firm on April 28.
The gains were capped, however, as the stock encountered stiff technical resistance after breaching NT$2,000 because of fears of a possible pullback in the near-term, they said.
Such cautious sentiment also kept investors from picking up other high-priced stocks, such as integrated circuit designer MediaTek Inc. (聯發科), and pushed the broader market into consolidation mode, dealers said.
Largan April Data Impress Market