Taiwan shares end up, backed by electronics, financial stocks
November 29, 2016, 12:16 am TWN
TAIPEI -- Shares in Taiwan closed 0.69 percent higher on Monday, rising above the 9,200 benchmark on the strength of the bellwether electronics sector and financial shares, dealers said.
The local market was also boosted by a rising New Taiwan dollar and record highs for key stock indexes on Wall Street on Black Friday, thanks to gains in consumer staples and technology shares, dealers said.
The weighted index on the Taiwan Stock Exchange (TWSE) ended the day up 63.17 points, or 0.69 percent, at 9,222.24, close to the previous high of 9,252 after the U.S. presidential election. Turnover totaled NT$71.27 billion (US$2.24 billion) during the session.
The financial sector led the gains in the broad market during the morning session before early gains were eroded as selling pressure increased on profit-taking at the end of trading.
However, with buying focused on the bellwether electronics sector, the main board closed above the 9,200 benchmark.
Shares in contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the most heavily weighted stock in the local market, smartphone camera lens maker Largan Precision Co. (大立光) and Hon Hai Precision Industry Co. (鴻海), an assembler of iPhones and iPads, all closed higher.
Old economy stocks also performed well, with Formosa Plastics Group, paper and pulp, steel and plastics shares all ending the day higher.
However, although turnover increased to more than NT$70 billion, it remained thin, capping upswings in the prices of many stocks and pushing them into consolidation mode, dealers said.
The Taiwan dollar rose NT$0.140 against the U.S. dollar to close at NT$31.802 on Monday, which accelerated the inflow of foreign capital into Taiwan and is expected to benefit the equity market in the near future, according to dealers.
The local bourse is expected to challenge the previous high if the global stock market remains stable, dealers said. However, investors remain cautious about a possible interest rate hike in the U.S. that could lead to a greater flow of funds into the U.S. and impact the local equity market.
US Dollar Closes Lower
on Taipei Forex
The U.S. dollar fell against the New Taiwan dollar Monday, losing NT$0.140 to close at NT$31.802.
Turnover totaled US$744 million during the trading session.
The greenback opened at NT$31.870, and moved between NT$31.780 and NT$31.870 before the close.