Taiwan shares close higher, despite low volume
CNATAIPEI--Shares in Taiwan closed higher on gains made by large-cap stocks on Monday, despite weak turnover that hit a six-week low.
October 29, 2013, 12:22 am TWN
The weighted index on the Taiwan stock exchange closed up 61.21 points, or 0.73 percent, at 8,407.83 after moving between 8,348.42 and 8,414.81.
Turnover was only NT$65.03 billion (US$2.21 billion) — the lowest in a single session since Sept. 15. The five-day average last week was NT$77.1 billion.
Taiwan Semiconductor Manufacturing Co. (台積電), which has the heaviest weighting in the local market, led the gains, closing 2.34 percent higher at NT$109.5. That helped push the semiconductor sub-index 1.48 percent higher.
Power management solutions provider Delta Electronics Inc.(台達電) gained 3.33 percent to NT$155 after Daiwa Securities raised its target price for the company from NT$155 to NT164 on a positive outlook for Delta's sales in the traditionally slow fourth quarter.
The brokerage house expected Delta, which was scheduled to hold an investor conference later Monday, to benefit from sales growth in its passive components and industrial automation businesses.
The auto sector performed the best during the session, with the sub-index ending 2.1 percent higher.
Yulon Nissan Motor Co. (裕隆日產), a joint venture of Taiwan's Yulon Motor Co. and Japan's Nissan Motor Co., surged 4.95 percent to NT$403 on the prospect of sales growth in Taiwan and of China-based Dongfeng Nissan Passenger Vehicle Co., in which Yulon Nissan holds a stake.
Yulon Nissan recently said its full-year sales in Taiwan is expected to beat the forecast of 43,800 vehicles, while the Chinese company contributed NT$2.95 billion to its profits during the first half of this year. Yulon Motor, meanwhile, closed flat at NT$52.1.
The food sub-index jumped 1.7 percent, boosted by cooking oil vendors Fwusow (福壽) Industry Co. and Taisun Enterprise Co. (泰山), which both surged by the daily maximum of 7 percent to close at NT$16.45 and NT$15.40, respectively.
Fwusow, the second-largest sesame oil maker in Taiwan, said it has been working at full capacity since the country's largest producer, Flavor Full Foods Inc. (富味鄉), admitted last week to have added cheaper cottonseed oil to its products without letting consumers know.
U.S. Dollar Closes Higher at NT$29.46
The U.S. dollar rose against the Taiwan dollar Monday, gaining NT$0.005 to close at NT$29.460. Turnover totaled US$541 million during the trading session.
The greenback opened at NT$29.455, and moved between NT$29.370 and NT$29.470 before the close.