Local bourse faces further technical resistance


CNA

TAIPEI — The local bourse encountered constant technical downward pressure yesterday, moving lower to fall below the 8,100-point mark at the end of the session, as investors shrugged off overnight gains on Wall Street, dealers said.

Although small-cap stocks such as solar energy firms and LED makers attracted rotational buying, their gains were not strong enough to lift the broader market, where profit taking still dominated the movement, the dealers said.

The weighted index closed down 66.68 points or 0.82 percent at 8,054.94, after fluctuating between 8,054.94 and 8,130.52, on turnover of NT$107.45 billion.

The market opened 4.41 points down on follow-through selling and downward pressure increased toward the end of the trading session, the dealers said.

“Technical hurdles remained stiff after the index breached 8,100 points two sessions earlier,” Concord Securities analyst Kerry Huang said.

“That’s why many investors preferred to stay on the sidelines amid fears of a major pullback,” Huang said. “Unless turnover had expanded, it would have been hard for the market to conquer the technical difficulties,” she added.

Huang said concerns over further losses ahead prompted local investors to ignore an almost four-year high posted by the S&P 500 index on Wall Street overnight and improving U.S. weekly initial jobless claims.