Taiwan shares end above 10,500 points

Taipei-Shares in Taiwan closed higher on Friday, extending momentum from a session earlier to breach the 10,500-point mark as major high-tech stocks shrugged off losses early in the day, dealers said.

The gains were limited, however, by cautious sentiment, as investors worried about potential volatility in American markets and wanted to see what comes out of the ongoing meeting of the world's central bankers, they said.

The weighted index on the Taiwan Stock Exchange closed up 26.55 points, or 0.25 percent, at 10,515.51, after moving between 10,478.72 and 10,519.84, on turnover of NT$119.71 billion (US$3.96 billion).

The market opened up 8.90 points on follow-through buying from Thursday, when the weighted index closed up 0.79 percent, but soon fell into negative territory.

Buying then re-emerged in mid-morning, focused mostly on select tech heavyweights such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), to push the index to the day's high, dealers said.

"Today's buying reflected better market sentiment here after foreign institutional investors had a net buy of more than NT$7 billion yesterday, which made many local retail investors happy," Hua Nan Securities analyst Henry Miao said.

According to the TWSE, foreign institutional investors bought a net NT$7.82 billion in shares in Taiwan's market on Thursday and a net NT$5.89 billion in shares on Friday.

The market's surge faded, however, after the weighted index breached 10,500 points and moved closer to 10,600 points, the nearest point of technical resistance. Many investors were afraid of a major pullback after the market's recent strong showing.

"Concerns over future movements on Wall Street remained in place amid concerns that U.S. President Donald Trump will say something unfavorable for U.S. markets, whose valuations have been high, to trigger more volatility," Miao said.

He was referring to Wall Street's slight fall on Thursday after Trump said he was willing to let the government shut down if his plan to build a border wall was not funded.

The bellwether electronics sector closed up 0.23 percent after TSMC, the most heavily weighted stock in the local market, gained 0.23 percent to close at the day's high of NT$217.50, off a low of NT$216.00, with 10.10 million shares changing hands.

Smartphone camera lens supplier Largan Precision Co. (???), closed unchanged at NT$6,000.00 after hitting a low of NT$5,955.00, while Hon Hai Precision Industry Co. (??) also ended flat at NT$116.00, off an early low of NT$115.50.

"The three companies are among Apple's most important suppliers. They got support from hopes that the U.S. consumer electronics giant will unveil the next generation iPhones on Sept. 12 as a foreign tech website reported," Miao said, referring to the France-based Mac4Ever.

In the non-high-tech sector, which also benefited from follow-though buying from Thursday, Fubon Financial Holding Co. (???) gained 0.53 percent to close at NT$47.50 and CTBC Financial Holding Co. (???) added 0.51 percent to end at NT$19.60, while food brand Uni-President Enterprises Corp. (??) rose 1.75 percent to close at NT$64.10.

"Before U.S. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi speak at the central banker meeting (held in Jackson Hole, Wyoming), investors preferred to remain cautious. And that's also why the local market moved in a narrow range today," Miao said.

Both Yellen and Draghi are scheduled to deliver speeches at the meeting later in the day.

Source: Focus Taiwan News Channel