TAIEX pulls back on renewed economic worries


CNA

TAIPEI — Renewed concerns over the global economy prevented the local bourse from making further gains and sent the index into negative territory at the end of the session yesterday, after the United States and Europe reported disappointing job data overnight, dealers said.

After a 2.33 percent jump Wednesday, the market encountered some profit taking pressure due to stiff technical resistance ahead of the 7,700-point level, dealers said.

Certain high tech heavyweights, however, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co., remained resilient throughout the session, lending some support to the broader market, dealers said.

The weighted index closed down 17.28 points, or 0.22 percent, at 7,659.53, after moving between 7,643.09 and 7,681.23. Turnover during the session totaled NT$83.25 billion. The market opened down 0.12 percent on a lackluster Wall Street performance overnight after lower-than-expected job growth data was reported in the U.S. private sector for April, dealers said.

Market sentiment was further dampened by the report of a record high unemployment rate of 10.9 percent in the eurozone for March, keeping the index fluctuating below Wednesday’s closing level, dealers said.

“Worries over the global economic fundamentals returned to affect the equity market,” Concord Securities analyst Kerry Huang said. “After yesterday’s significant advance, it was no surprise that investors tended to find a reason to take profit.”