Taiwan stock market up despite Nasdaq’s weak performance

BY Sandra Chuang, The China Post

The Taiwan stock market yesterday rose 45.02 points to close at 5,271.3, while the daily turnover shrank to NT$49.2 billion from Friday’s NT$92.9 billion. The market fell 14.58 at the opening due to the weak overnight performance on Nasdaq. A lack of interest in chasing prices left the number of market transaction to shrink and the market index to drop down. However, a later-session round of bargain-hunting erased the early losses, pushing the market up to end up at its high for the day. “The market rose in thin transaction while most investors remained somewhat cautious on chasing prices after the lackluster sales reports for May,” said a dealer. “But the depressing figures did not have a major impact on the market. Investors seemed to expect the situation to improve in the second half of the year,” he added. The modest gains in technology shares yesterday led the market to move up when the market was about to close.

Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) both reported a decline in their May revenues. The lower-than-expected financial reports, however, did not influence their performance yesterday.

TSMC ended 2.1 percent higher at NT$99 while UMC shed 0.9 percent to close at NT$55. Financial shares were generally higher, with investors increasingly expecting the legislature to hold an extraordinary session to review all the main financial bills.

Traditional shares were mixed, with shares traded in thin liquidity on a lack of fresh incentives.