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Local bourse hits resistance near 7,500 points

TAIPEI -- The local bourse closed little changed after profit-taking eroded most of its early gains ahead of stiff technical resistance at around the 7,500-point mark, dealers said.

The early gains invited many investors to pocket profits as concerns over the global economy continued to affect market sentiment throughout the trading session, they said.

The weighted index closed up 4.23 points, or 0.05 percent, at 7,422.59, after moving between 7,397.80 and 7,442.55, on turnover of NT$83.37 billion.

The market opened up 3.80 points and moved to the day's high in a knee-jerk reaction to a rising Wall Street overnight.

Hua Nan Securities analyst Stan Chang said many investors were watching closely whether Thursday's policymaking meeting of the European Central Bank will yield any liquidity easing measures to boost the economy.

“Before the meeting concludes, many investors at home and abroad preferred to lock in profit and take the money and run,” Chang said, referring to the lackluster performance in regional markets, such as Hong Kong and Shanghai.

Chang said that because Wall Street was to be closed today for the U.S. Independence Day holiday, investors here tended to turn cautious because of a lack of fresh leads to guide further actions.

“The technical resistance at around 7,500 points in the local bourse appeared very strong. Amid cautious market sentiment, it will be hard for the market to break the barrier in the short term,” Chang said.

In yesterday's trading, the cement sector scored the highest gains among the major eight sectors of the market, finishing up 1 percent. Financials rose 0.7 percent, food shares gained 0.3 percent, construction stocks added 0.2 percent, and the paper and pulp sector closed up 0.1 percent.

But textile stocks fell 0.3 percent, and machinery and electronics shares and plastics and chemical stocks closed down 0.2 percent.

In the financial sector, E. Sun Financial rose 4.49 percent to NT$16.30, and Mega Financial gained 1.33 percent to NT$22.85 on hopes of closer financial ties across the Taiwan Strait, dealers said.

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