Shares in Taiwan closed slightly higher Friday, as investors sought to lock in their profits, ahead of the psychological barrier of 15,000 points on the main board, dealers said.
Market sentiment remained haunted by worry over how the United States Federal Reserve might respond next week to a 9.1 percent year-on-year spike in the American consumer price index in June, dealers said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 11.66 points, or 0.08 percent, at 14,949.36, after moving between 14,902.32 and 14,966.24. Turnover totaled NT$262.64 billion (US$8.78 billion).
The market opened up 0.10 percent on follow-through buying from the previous session, and it hit the day’s high early in the session, following gains on the U.S. markets Thursday, dealers said.
Large-cap semiconductor stocks, however, saw profit taking, as the Taiex moved closer to 15,000 points, but contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) remained above its previous closing level, lending support to the broader market until the end of the session, dealers added.
“There are high technical hurdles ahead of 15,000 points, which is a critical psychological level,” Hua Nan Securities analyst Kevin Su said. “That’s why many investors refrained from chasing prices today, fearing a pullback.”
TSMC, tech stocks
TSMC stock benefited from hopes that the U.S. Congress will soon pass a bill to provide subsidies for semiconductor companies operating there, Su said.
TSMC, which is building a 12-inch wafer plant in Arizona at a cost of US$12 billion, saw its shares rise 0.40 percent Friday to close at NT$503.00, after coming off a high of NT$505.00.
“The stock may go into consolidation for some time, at around the NT$500.00 mark,” Su said.
Many other semiconductor stocks, meanwhile, closed in negative territory Friday, as investors moved to the sell side for profit taking.
Among them, United Microelectronics Corp. fell 0.82 percent to end at NT$42.45, smartphone IC designer MediaTek Inc. dropped 1.54 percent to close at NT$705.00, and application-specific IC (ASIC) designer Alchip Technologies Ltd. shed 1.88 percent to end at NT$678.00.
Su said iPhone assembler Hon Hai Precision Industry Co. also lent some support to the broader market, rising 0.47 percent to close at NT$106.00, amid optimism about its efforts to develop electric vehicles.
PC brand Acer Inc. also saw some gains, rising 1.57 percent to end at NT$22.65, as its subsidiary Acer E-Enabling Service Business Inc. prepares to launch an initial public offering on the over-the-counter market next month.
Mixed performances in other sectors
“While many old economy stocks appeared quiet today, Uni-President and President Chain Store continued to attract strong interest, after they reached a deal Thursday on the full acquisition of Carrefour Taiwan, which is expected to boost their bottom line,” Su said.
Food brand Uni-President Enterprises Corp. rose 2.50 percent to close at NT$69.60, and its affiliate President Chain Store Corp., which owns the 7-Eleven convenience store chain in Taiwan, gained 4.39 percent to end at NT$297.50.
In other sectors, Formosa Plastics Corp. lost 1.01 percent to close at NT$87.90, and Formosa Petrochemical Corp. dropped 0.84 percent to end at NT$82.60, after a fall in international crude oil prices overnight.
Textile brand Far Eastern New Century Corp. fell 0.77 percent to close at NT$32.15, and Eclat Textile Co. dropped 2.56 percent to end at NT$437.50.
In the financial sector, Cathay Financial Holding Co. lost 0.11 percent to close at NT$45.00, while Fubon Financial Holding Co. ended unchanged at NT$58.40.
“While the market is expecting the Fed to raise its key interest rates by 75 basis points next week, investors remained anxious, waiting for clues on what it might decide in its next meeting in September,” Su said. “Moreover, the ongoing earnings season in the Taiwan and U.S. markets is expected to continue to move share prices.”
According to the TWSE, foreign institutional investors sold a net NT$4.02 billion worth of shares on the main board Friday.
Source: Focus Taiwan News Channel