Taiwan market rebounds on gains witnessed by Wall Street


CNA

TAIPEI, Taiwan — Shares in Taiwan staged a rebound Thursday as investors, encouraged by gains on Wall Street overnight, bought into the local bellwether electronics sector, dealers said.

Many local investors were relieved to some extent after the U.S. Federal Reserve decided at its monthly policymaking meeting to keep its key interest rates low for a ��considerable time,�� dealers said.

The weighted index on the Taiwan Stock Exchange closed up 50.27 points, or 0.56 percent, at 8,878.63, after moving between 8,876.88 and 8,946.42. Turnover totaled NT$87.70 billion (US$2.79 billion) during the session.

The market opened up 0.96 percent in a knee-jerk reaction to the gains on Wall Street overnight. Led by a 2.12 percent rise on the tech-heavy NASDAQ index and a 2.16 percent increase on the Philadelphia Semiconductor Index, the local electronics sector steamed ahead, pushing the broader market to the day’s high, dealers said. Resistance at 9.000 Points However, as the index moved closer to the nearest technical resistance at around 9,000 points, some investors started to lock in their gains, which capped the upturn by the close, dealers said.

��Today’s gains were simply technical in nature,�� Concord Securities analyst Kerry Huang said. ��In the absence of many foreign institutional investors, it was not easy for the local market to make a significant comeback after the recent sell-off.��

The market rebounded Thursday although foreign institutional investors sold a net NT$7.63 billion worth of local shares on the local main board, recording net sales for the 10th consecutive session. Leave for Christmas Holiday

��Although some foreign investors resumed buying today, it is likely to be limited as they prepare to leave for the Christmas holiday,�� Huang said. ��They are unlikely to start any significant buying again until January.��

He said many investors remained reluctant to chase prices amid worry over further foreign selling down the road.

In the wake of the gains posted by tech stocks on the U.S. market overnight, the local electronics sector closed up 0.62 percent and the semiconductor sub-index ended up 1.02 percent after the Fed decided to maintain high liquidity.

Among the gaining high-tech stocks, contract chip maker United Microelectronics Corp. (�p�q) climbed 2.57 percent to close at NT$139.50, and rival Taiwan Semiconductor Manufacturing Co. (�x�n�q) added 0.77 percent to end at NT$131.50.

Hon Hai Precision Industry Co. (�E��), which assembles iPhones and iPads for Apple Inc., rose 0.59 percent to close at NT$84.80, off an early high of NT$86.20.