Taipei, April 7 (CNA) Shares in Taiwan moved slightly higher Friday amid caution ahead of the release of March non-farm payroll data in the United States later in the day, dealers said.
Turnover dipped below NT$200 billion (US$6.56 billion) as interest in the bellwether electronics sector faded, while buying rotated to select old economy stocks, including to select “military concept stocks,” dealers added.
The Taiex, the Taiwan Stock Exchange’s benchmark weighted index, ended up 25.73 points, or 0.16 percent, at 15,836.50 after moving between 15,811,19 and 15,877.99. Turnover totaled NT$175.65 billion, down from NT$210.59 billion a session earlier.
The market opened up 0.29 percent and rose to the day’s high early in the session on a mild technical rebound from a 0.36 percent fall on Thursday, dealers said.
As the Taiex closed in on the 16,000-point mark, some investors shifted to the sell side by cutting their holdings in the tech sector, but the overall index still finished in positive territory on late buying interest.
Some of the overall sluggishness was the result of the ADP Employment Report released in the U.S. on Wednesday, which showed U.S. private sector hiring rising by only 145,000 in March, down from 261,000 in February and below a consensus estimate of 210,000.
“Hiring in the U.S. private sector failed to meet expectations, and there are growing worries over a possible recession in the U.S. because of aggressive rate hikes by the Fed,” Concord Capital Management analyst Lu Chin-wei (???) said.
“That’s why the market’s attention is now focused on the upcoming non-farm payroll report.”
Before the release of that new data, investors in Taipei seemed reluctant to chase prices Friday, limiting any gains, Lu said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, fell below its previous closing level early in the session but eventually rebounded to close 0.19 percent higher at NT$531.00.
That helped the electronics sector barely stay in positive territory, finishing up 0.01 percent Friday at 751.61.
“Technically speaking, TSMC stayed in consolidation mode,” Lu said. “TSMC’s investor conference is April 20, and many investors preferred to stay on the sidelines and wait for its guidance for the second quarter and for all of 2023 at the event.”
Other major semiconductor stocks remained in the doldrums. Smartphone IC designer MediaTek Inc. fell 0.53 percent to end at NT$749.00, and contract chipmaker United Microelectronics Corp. closed 0.76 lower at NT$52.40.
IC packaging and testing services provider ASE Technology Holding Co. also finished lower at NT$110.50, down 1.78 percent.
Elsewhere in the tech sector, iPhone assembler Hon Hai Precision Industry Co. fell 0.48 percent to close at NT$103.00, and Yageo Corp., the world’s third largest multi-layer ceramic capacitor (MLCC) maker, lost 0.77 percent to end at NT$516.00.
“With a slowing electronics sector, buying simply rotated to some old economy industries,” Lu said. “I think such interest largely came from local investors.”
The transportation industry was one of them, rising 1.94 percent, and Lu attributed the gains to a technical rebound as cargo transportation demand remained weak due to falling global merchandise shipments.
Evergreen Marine Corp., the largest container cargo shipper in Taiwan, rose 3.48 percent to close at NT$163.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. gained 2.50 percent and 2.36 percent, respectively, to end at NT$65.60 and NT$69.40.
Buying was also seen among bulk cargo shippers with U-Ming Marine Transport Corp. up 3.23 percent to close at NT$57.60 and Chinese Maritime Transport Ltd. up 1.64 percent to end at NT$40.35.
Amid tensions across the Taiwan Strait after President Ing-wen (???) met U.S. House Speaker Kevin McCarthy in California on Wednesday U.S. time, buying in so-called military concept stocks continued, Lu said.
Among them, Lungteh Shipbuilding Co. soared 7.06 percent to close at NT$136.50, wireless communications device supplier Loop Telecommunication International, Inc. gained 3.45 percent to end at NT$31.50, and Aerospace Industrial Development Corp. added 0.95 percent to close at NT$42.40.
Among green energy investors, Century Iron and Steel Industrial Co. and Teco Electric & Machinery Co., which are engaged in offshore wind power development, rose 4.59 percent and 1.06 percent, respectively, to end at NT$43.05 and NT$102.50.
“While the Taiex closed above the five-day moving average of 15,820 points today, it is expected to face high technical hurdles ahead of 16,000 points,” Lu said. “U.S. market movements will continue to dictate what the local market does.”
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$1.26 billion in shares on the market Friday.
Source: Focus Taiwan