Taiwan shares end up, led by high-tech sector
September 24, 2016, 12:22 am TWN
TAIPEI--Shares in Taiwan closed higher Friday, extending momentum from the previous sessions, as the bellwether electronics sector continued an uptrend amid optimism over its shipments during the current peak season in the global high-tech market, dealers said.
Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) — the most weighted stock on the local market — led gains in the electronic sector and pushed the broader market higher throughout the session on the back of sound fundamentals, dealers said.
The weighted index on the Taiwan Stock Exchange (TWSE) ended up 49.36 points, or 0.53 percent, at the day's high of 9,284.62, off an early low of 9,228.66.
Turnover totaled NT$64.48 billion (US$2.05 billion) during the session.
The market opened up 4.99 points but soon fell into negative territory as investors pocked the gains they had built earlier in the week, despite a stronger Wall Street, dealers said.
On Wall Street, the Dow Jones Industrial Average closed up 0.54 percent and the tech-heavy NASDAQ index ended up 0.84 percent Thursday after the Federal Reserve decided not to raise interest rates, dealers said.
In the Taiwan market, buying reemerged around 9:30 a.m. Friday, lifting the electronics sector, and became more evident late in the trading session, which boosted the weighted index to the day's high at the close, dealers said.
"The late buying increased turnover by about NT$6 billion, largely focusing on high-tech stocks, in particular TSMC," Hua Nan Securities analyst Kevin Su said.
"Judging from the gains, I think that foreign institutional investors stood on the buy side again since they still held a large chunk of long position contracts in the futures market."
According to the TWSE, foreign institutional investors bought a net NT$4.77 billion worth of shares on the main board Friday.
Su said foreign institutional investors held about 74,000 more long position contracts than short position ones in the local futures market as of Thursday.
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The bellwether electronics sector closed up 0.66 percent after TSMC, the world's largest contract chip-maker, rose 1.08 percent to end at a record high of NT$187.50.