Shares recoup early losses after Apple suppliers rebound
October 18, 2016, 12:03 am TWN
TAIPEI--Shares in Taiwan recovered earlier losses Monday after select suppliers in the Apple Inc. supply chain staged a rebound, pushing up the broader market into positive territory by the end of the session, dealers said.
Turnover remained thin, with many investors staying on the sidelines, reluctant to chase prices during the ongoing earnings season at home and on Wall Street, the dealers said.
The weighted index on the Taiwan Stock Exchange closed up 11.05 points, or 0.12 percent, at 9,176.22, after moving between 9,074.99 and 9,182.67, on turnover of NT$60.86 billion (US$1.91 billion).
The market opened down 0.16 percent and fell to the day's low below the 9,100-point mark on follow-though selling from a session earlier, with downward pressure focusing on major high-tech stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the most heavily weighted stock in the local market, the dealers said.
However, bargain hunters then turned active, rushing to pick up Apple concept stocks, in particular smartphone camera lens supplier Largan Precision Co. (大立光) and Hon Hai Precision Industry Co. (鴻海) — an assembler of iPhones and iPads — as well as some major old-economy stocks, to vault the weighted index back into the black, they said.
"It seems that the broader market got strong technical support at around 9,100 points, so that the index staged a rebound from the day's low," Concord Securities analyst Kerry Huang said, referring to the buying in select Apple suppliers.
A research note released by a U.S. brokerage showed that shipments of iPhones for the fourth quarter is expected to hit 74 million units, up 2 million units from a previous market estimate, which prompted investors here to raise their holdings in some of the major Apple suppliers such as Largan and Hon Hai, the dealers said.