Local bourse ends day up, but only just
The China Post news staff and CNATAIPEI, Taiwan -- Shares on the Taiwan Stock Exchange ended slightly higher Thursday after moving in a narrow range as market sentiment remained haunted by lingering concerns over a looming fiscal cliff in Washington, dealers said.
December 28, 2012, 12:43 am TWN
While the broader market was locked in tepid trade, smartphone vendor HTC Corp. closed sharply higher, outperforming the index, with buying triggered by solid sales of the HTC J Butterfly in Japan, dealers said.
The weighted index closed up 14.22 points, or 0.18 percent, at 7,648.41, after fluctuating between 7,622.73 and 7,661.01, on turnover of NT$69.89 billion.
The slow transaction volume was again a concern voiced by legislators, who yesterday expressed doubts over the Ministry of Finance's plan to collect over NT$90 billion in transaction tax next year.
“It will be achievable, given an economic turnaround,” said Tseng Ming-tsung, deputy finance chief.
The market yesterday opened up 0.61 points as investors here took cues from a lackluster performance on Wall Street overnight, with many of them waiting for a possible agreement between the White House and the U.S. Congress to resolve a fiscal deadlock, dealers said.
Although buying in HTC lent support to the broader market, the market was faced with strong technical resistance, which capped the gains as the index moved closer to the 7,700 point mark, they said.
NT$90 bil. Pension Investment
Meanwhile, the labor pension funds will invest NT$90 billion in stocks next year, the agency that runs the funds said yesterday.
The NT$90 billion will include NT$50 billion in new investment and NT$40 billion that the government will take out from stocks and reinvest in them.
Among other high-tech stocks, Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, fell 0.42 percent to close at NT$95.60, while flat panel maker Innolux Corp. rose 1.61 percent to NT$15.75 amid optimism toward its bottom line.
The plastics and chemical sector scored the highest gains among the eight major sectors of the market, finishing up 0.4 percent. Machinery and electronics added 0.32 percent, construction stocks rose 0.26 percent, and the cement sector closed up 0.13 percent.
Bucking the upside of the broader market, foodstuffs shed 0.75 percent, paper and pulp stocks fell 0.73 percent, financials lost 0.09 percent, and the textile sector ended down 0.05 percent.