Local market soars past 9,000 points on back of rise in 'Apple concept stocks'
May 24, 2014, 12:05 am TWN
TAIPEI -- Shares in Taiwan closed above 9,000 points Friday as “Apple concept stocks” continued their momentum, helping the broader market to clear the high technical hurdles ahead of that level, dealers said.
The weighted index on the Taiwan Stock Exchange ended up 38.59 points, or 0.43 percent, at the day's high of 9,008.22, off an early low of 8,960.79, on turnover of NT$96.11 billion (US$3.19 billion).
Technical Hurdle Moves Up
“With the index having breached 9,000 points, the next strong technical resistance will be 9,200 points,” Chu said. “If turnover expands to NT$100 billion or higher, the local market will have a better chance of overcoming the upcoming technical difficulties.”
The market opened 8.84 points lower in a mild correction after the index's 1.2 percent rise in the previous session. But the local market immediately regained its footing, as buying focused on the optoelectronics sector, led by Largan, dealers said.
The buying extended to other local Apple suppliers after shares of the U.S. firm hit a 19-month high overnight, and the non-high tech stocks also rode the wave, late in session particularly, helping to vault the index past 9,000 points at the close, dealers said.
“Foreign institutional investors have built a large chunk of long-position contracts in the futures market. I am not surprised that the bellwether electronics sector continued its uptrend, pushing the index past 9,000 points today,” KGI Securities analyst Phil Chu said.
Local suppliers to Apple Inc., including smartphone camera maker Largan Precision Co. (大立光電), posted significant gains on hopes that the U.S. consumer electronics giant will launch new gadgets later this year and thus boost these suppliers' shipments, dealers said.