Local bourse breaks four-session losing streak


CNA

TAIPEI — The local bourse ended a four session losing streak yesterday to close in positive territory as select high tech stocks, in particular the firms in Apple’s supply chain, staged a rebound, dealers said.

The financial sector also attracted buying on expectations that Taiwan and China will conclude negotiations soon and sign an agreement during the next round of high-level cross-Taiwan Strait talks to set up a currency settlement mechanism, they said.

However, turnover remained thin as investors stayed on the sidelines ahead of a two-day summit among the leaders of the European Union, scheduled to kick off later in the week, the dealers added.

The weighted index closed up 45.08 points or 0.63 percent at 7,183.01, after moving between 7,127.98 and 7,199.32, on turnover of NT$54.39 billion. The market opened up 3.86 points and moved to the day’s low in early trading on follow-through selling from the previous session, the dealers said.

However, as the index moved closer to the nearest support level of around 7,100 points, bargain hunters turned active to pick up Apple concept stocks, which pushed up share prices after the local media reported that the U.S. consumer electronics giant will launch a long-awaited new iPhone model in August, the dealers said.

“It seemed that the market had strong support at around 7,100 points,” Hua Nan Securities analyst Stan Chang said. “Investors seized the iPhone 5 reports as a reason to buy.”

Local media said Apple is likely to unveil the iPhone 5 in August, a couple of months ahead of schedule, to tap back-to-school buying at the end of the summer vacation.