Losses on local market narrowed by select electronics gains


CNA

TAIPEI–Shares in Taiwan recovered most of their earlier losses Thursday as bargain hunters turned active by buying into select high-tech stocks after a recent sell-off, dealers said. The weighted index on the Taiwan Stock Exchange ended down 21.82 points, or 0.25 percent, at 8,633.69, after moving between 8,501.29 and 8,676.46 on turnover of NT$107.04 billion (US$3.52 billion). Support Formed at 8,500

“Judging from today’s movement, I think the market had strong technical support at around 8,500 points,” Concord Securities analyst Kerry Huang said. “To my knowledge, some foreign institutional investors were willing to buy shares as bargain hunters after the recent sell-off.” “But market sentiment remains cautious amid fears of further volatility in the U.S. market, which could send the global equity markets into a tailspin,” Huang said. Some stocks in the Apple Inc. supply chain attracted bargain hunting as many investors have high hopes that the new iPhones will boost their shipments for the fourth quarter, the dealers said. The market opened down 0.61 percent and fell to the day’s low in a knee-jerk reaction to an additional 1.1 percent drop on the Dow Jones Industrial Average overnight, the dealers said. With the local index moving closer to the 8,500-point level, some investors rushed to pick up bargains, which vaulted the index into positive territory before cautious sentiment remained in place, pushing down the index below the previous closing level again at the end of the session, they said. High-tech Tower of Strength Huang said that select high-tech blue chips served as an anchor to stabilize the broader market. Taiwan Semiconductor Manufacturing Co. (TSMC,�x�W�n���q��), the most heavily weighted stock in the local market, reversed its early losses to lend some support to the broader market as investors had high hopes that the chip maker will come up with positive leads during an investor conference which convened after the market close, the dealers said. TSMC, the world’s largest contract chip-maker, closed unchanged at NT$121.50, off an early low of NT$120.00 before its investor conference. “Many investors were looking for more clues about global demand in the semiconductor industry in TSMC’s investor conference. I am particularly concerned how inventory levels in the IC business have been lowered,�� Huang said. Among the local Apple concept stocks, smartphone camera lens maker Largan Precision Co. (�j�ߥ��q) rose 4.74 percent to close at NT$2,320.00, off an early low of NT$2,160.00, while metal casing maker Catcher Technology Co. (�i������) gained 0.58 percent to end at NT$259.50, off an early low of NT$252.00. Largan also held an investor conference after the market close.