Local market rebounds, ends at 8,966.44 points


TAIPEI, Taiwan — Shares in Taiwan staged a mild technical rebound Thursday from the heavy losses seen a session earlier as concerns over further institutional selling offset the effects of an overnight rally on Wall Street, dealers said. The financial sector served as an anchor to stabilize the broader market on the back of strong bottom lines among the major financial holding companies, while the bellwether electronics sector remained slow, which prevented the index from moving higher, the dealers said. The weighted index on the Taiwan Stock Exchange closed up 11.26 points, or 0.12 percent, at 8,966.44, after moving between 8,946.16 and 9,054.67 on turnover of NT$82.94 billion (US$2.73 billion). “After recent massive foreign institutional selling in the local equity market, fears escalated that foreign investors will continue to cut their holdings,” Concord Securities analyst Kerry Huang said. “For the moment, the willingness to chase prices was low.” Huang said that the electronics sector was the target of many investors who took profits during the session. The electronics sub-index closed down 0.04 percent. “In addition, buying in financial stocks appeared stronger today as investors were impressed by several major financial holding companies’ earnings. The gains also kept the broader market from closing lower,” Huang said. Taiwan Semiconductor Manufacturing Co. (TSMC, 台灣積體電路), the most heavily weighted stock in the local market, rose 2.04 percent to close at NT$125.00, while IC packaging and testing services provider Advanced Semiconductor Engineering Inc. (日月光半導體) added 0.54 percent to end at NT$37.30 on the back of a record sales high for the third quarter. Integrated circuit designer MediaTek Inc. (聯發科技) shed 5.19 percent to close at NT$420.00 amid worries over rising competition from its Chinese rivals and slow-season effects in the fourth quarter. Smartphone camera lens supplier Largan Precision Co. (大立光電) closed unchanged at NT$2,275.00 off an early high of NT$2,360.00, while metal casing maker Catcher Technology Co. (可成科技) also ended flat at NT$278.00 off an early high of NT$284.00. Fubon Financial Holding Co. (富邦金控) rose 2.81 percent to close at NT$49.35 after the company posted NT$5.23 in earnings per share (EPS) for the first nine months of this year, up from NT$2.76 in EPS recorded a year earlier. Cathay Financial Holding Co. (國泰金控) gained 1.01 percent to end at NT$50.00 after the company registered NT$3.72 in EPS during the same period, up from NT$2.32 in EPS seen a year earlier.