Local shares rebound on EU debt concerns


CNA

TAIPEI — Taiwan share prices staged a rebound yesterday as optimism increased that debt-ridden Greece will be able to reach a debt restructuring deal with its private bondholders to avoid a default, dealers said. The financial sector was boosted by rotational buying on hope that the government will relax restrictions on Chinese investment in local financial institutions, while construction stocks also attracted interest on relatively low valuations, they said.

The weighted index closed up 81.48 points or 1.03 percent at 7,984.56, after moving between 7,905.50 and 8,000.93, on turnover of NT$104.15 billion. Among the “Apple concept stocks,” which are in the Apple supply chain, Hon Hai Precision Industry, the world’s largest contract electronics maker, rose 2.23 percent to close at NT$101.00 and metal casing manufacturer Catcher Technology gained 2.97 percent to end at NT$225.50 after Apple unveiled the newest version of the iPad.

The market opened up 0.64 percent after investors took cues from an overnight gain on Wall Street amid improved sentiment toward the debt problems in the eurozone, the dealers said.

Selling followed to drag down the index to around the closing level of the previous session before buying emerged to lift financial and construction stocks and push the index higher again, they said.

However, the gains were capped by the end of session as technical resistance ahead of the 8,000-point mark remained strong, they added.

“Look at the reduced turnover. I think many investors preferred to stay on the sidelines amid fears of a major technical correction before the crucial 8,000-point level,” Concord Securities analyst Kerry Huang said.

Huang said the market was watching closely how Washington will report its February jobless data later this week, in a bid to have a better understanding about global economic fundamentals.