Taiwan shares edge lower on thin turnover

Shares in Taiwan closed slightly lower Tuesday on a second straight day of unusually low turnover as many foreign institutional investors stayed away from the market because of the Christmas holiday, dealers said.

The weighted index on the Taiwan Stock Exchange (TWSE) closed down 1.27 points, or 0.01 percent, at 9,109.27, after moving between 9,100.83 and 9,132.05.

Turnover totaled NT$33.43 billion (US$1.04 billion) during the session, after reaching only NT$31.54 billion on Dec. 26. Turnover in Taiwan’s market normally hits at least NT$60 billion to NT$70 billion per day.

In the bellwether electronics sector, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC), rose 0.28 percent to close at NT$180, and Hon Hai Precision Industry Co., an assembler of iPhones and iPads, edged up 0.24 percent to close at NT$83.50.

Largan Precision Co., a smartphone camera lens supplier to Apple, rose 0.56 percent to end at NT$3,590.

Among integrated circuit stocks, integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. rose 0.77 percent to close at NT$32.70, and IC designer MediaTek Inc. edged up 0.93 percent to end at NT$218.

The financial sector underperformed the broader market on Tuesday, with Cathay Financial Holding Co. closing down 0.94 percent at NT$47.60 and Fubon Financial Holding Co. falling 1.38 percent to close at NT$50.10.

CTBC Financial Holding Co. ended down 0.28 percent at NT$17.5, and Mega Financial Holding Co. closed down 0.65 percent at NT$22.85.

Taishin 2000 High-Tech Fund manager Shen Chien-hung (沈建宏) attributed the thin turnover over the past two days to the strong U.S. dollar and the Christmas holiday period, which kept many foreign institutional investors away from the market.

He said local stocks have lacked strong momentum recently, and he predicted that the performance of the U.S. dollar will continue to be an important indicator of the direction in which Taiwan shares will move.

Source: Focus Taiwan News Channel

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.