Shares in Taiwan closed slightly higher on Wednesday, extending the momentum from the previous day, but moved in a narrow range throughout the session, with gains capped ahead of strong technical resistance around the 9,300-point mark.
Boosted by electronics shares, the weighted index opened high and approached the 9,300 mark before giving up early gains.
The rise came on the back of a stable performance by electronics shares following a record high posted by the Dow Jones Industrial Average overnight, dealers said.
The weighted index on the Taiwan Stock Exchange (TAIEX) closed up 13.12 points, or 0.14 percent, at 9,263.89 on Wednesday, after moving between 9,299.92 and 9,247.50 on turnover of NT$64.73 billion (US$2.03 billion).
The gains posted by high-tech stocks in the U.S. market led to rises in their counterparts on the local equity market, in particular large-capped electronics stocks such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), iPhone and iPad assembler Hon Hai Precision Industry Co. (鴻海), and smartphone camera lens supplier Largan Precision Co. (大立光), helping the broader market to end the day higher, dealers said.
The bellwether electronics sector closed up 0.24 percent, with shares in Hon Hai gaining 0.9 percent to end at NT$83.10, while TSMC, the most heavily weighted stock on the local market, fell 0.2 percent to end at NT$181.50.
Shares in Largan Precision rose 2 percent to finish at NT$3,750.00 and IC designer MediaTek Inc. (聯發科) ended 0.4 percent lower at NT$225, with only 51,000 shares changing hands.
Shares in TransAsia again fell by the the maximum daily 10 percent, ending at NT$2.03, the lowest ever.
The financial sector ended 0.07 percent lower, with Cathay Financial Holding Co. (國泰金) losing 0.2 percent to end at NT$48.9, while Fubon Financial Holding Co. (富邦金) closed unchanged at NT$51 and Mega Financial Holding Co. (兆豐金) remained unchanged at NT$23.25.
The bourse is expected to remain strong in the near future as the effect of an anticipated U.S. Federal Reserve rate hike on capital market liquidity fades, said Kent Liu (劉宇衡), a fund manager at Taishin Securities Investment Trust Co. (台新投信).
However, investors should still be watchful for potential impacts on the local stock market following Donald Trump’s election as U.S. president, he added.
Source: Focus Taiwan News Channel