Taiwan stock market up 0.71% on technical rebound

Sandra Chuang, The China Post

The Taiwan stock market yesterday rose 29.55 points, or 0.71 percent, to close at 4,220.33, while the daily turnover shrank from Thursday’s NT$51.5 billion to NT$38 billion. The index rose 6.64 points at the opening in a technical rebound after recent losses before profit-taking in electronic shares pushed the market into negative territory. However, as bargain-hunting emerged in heavyweights and select financial shares, the market regained steam and headed slightly higher toward close. Expectation that the economic development advisory council is likely to discuss the issue of direct links across the Taiwan Strait buoyed the transport sector, said a dealer. Adding to the factors that pulled up the market was a rise in financial shares, supported by hopes of further interest rate cuts and suspected government funds, they said. “However, the relatively thin turnover suggests that further range bound consolidation or even a resumed downturn is possible,” a dealer said. Transport shares got a strong boost on hopes of cross-strait direct links, with Evergreen Marine rising 6.9 percent to NT$11.7 and China Airlines adding 7 percent to NT$13.

Technology shares were mixed with some titles rebounding from recent losses while others continued to drift lower.

Taiwan Semiconductor Manufacturing Co. shed 0.8 percent to NT$60.5 while United Microelectronics Corp. added 2.3 percent to NT$35.3. Financial shares also closed generally higher rebounding from recent sharp falls.