Local market ends down in consolidation


TAIPEI–Shares in Taiwan closed lower Thursday after moving in consolidation mode amid fears over further volatility on Wall Street as investors grew worried about the pace of the global economic recovery, dealers said.

Taiwan Semiconductor Manufacturing Co. (TSMC, �x�n�q) bounced back from losses seen a session earlier, lending support to the bellwether electronics sector, while certain non-high tech stocks, including financial stocks, came under pressure to keep the broader market in the red, the dealers said.

The weighted index on the Taiwan Stock Exchange ended down 15.14 points, or 0.16 percent, at 9,165.09, after moving between 9,149.10 and 9,219.43, on turnover of NT$88.49 billion (US$2.79billion).

The market opened up 0.27 percent and rose to the day’s high on a mild technical rebound due to a stronger TSMC, but with the index briefly breaching 9,200 points, selling set in, with some old economy and financial stocks in focus, which pushed down the local market at the end of the session, the dealers said.

��Judging from the movement, the local equity market remained in consolidation mode as many investors feared that Wall Street will remain volatile, affecting the global markets, including Taiwan,�� Concord Securities analyst Kerry Huang said. Plunge in Oil and Copper Prices ��Concerns over the global economic recovery remain in place as investors witnessed a plunge in crude oil and copper prices, which raised worries over global demand,�� Huang said.

The World Bank has cut its forecast of global economic growth for 2015 to 3 percent from an earlier estimate of 3.4 percent.

Fortunately, Huang said, TSMC’s gains prevented the broader market from falling further ahead of the release of the chip maker’s earnings report for 2014 and guidance for the first quarter of 2015.

TSMC rose 1.15 percent to close at NT$131.50 with 40.62 million shares changing hands after a 1.89 percent slump seen a session earlier. After the market closed, TSMC said that its earnings per share (EPS) stood at NT$10.18, compared with NT$7.26 recorded a year ago.

��Many investors are waiting for TSMC’s comments on the macro-economy and the semiconductor business for this year,�� Huang said. ��Its assessment could move the market tomorrow,�� he added.

The bellwether electronics sector closed down 0.04 percent, appearing resilient compared with the broader market.

Among other high-tech blue chips, smartphone camera lens supplier Largan Precision Co. (�j�ߥ�) rose 0.43 percent to end at NT$2,360.00 before its release of its 2014 results, while Hon Hai Precision Industry Co. (�E��), which assembles iPhones and iPads for Apple Inc., fell 0.59 percent to close at NT$84.80. Non-high Tech Sector In the non-high tech sector, Fubon Financial Holding Co. (�I������) fell 0.50 percrnt to close at NT$49.50, and Cathay Financial Holding Co. (��������) lost 0.55 percent to end at NT$45.00.

��Market sentiment remained cautious. If TSMC delivers no surprises in its investor conference, I expect a narrow trading range will continue tomorrow, the last session of the week, with some technical support expected at around 9,100 points,�� Huang said.