Taipei-Shares in Taiwan closed above the 10,600- point mark Tuesday on the back of gains posted by select large-cap stocks across the board after consolidation in the past few sessions, dealers said.
The upturn was capped amid lingering concerns over geopolitical tension, while fears of possible volatility on Wall Street also prevented investors here from chasing prices to push up share prices even higher, the dealers said.
The weighted index on the Taiwan Stock Exchange closed up 47.97 points, or 0.45 percent, at the day's high of 10,617.84, off an early low of 10,564.26, on turnover of NT$109.68 billion (US$3.66 billion).
The market opened up 0.13 percent on a technical rebound from a fall seen a session earlier, with the weighted index moving in a narrow range throughout the session on a lack of fresh leads from the U.S. market, the dealers said.
Buying became more visible in the late trading session, focusing on market heavyweights such as smartphone camera lens supplier Largan Precision Co. (???) and Formosa Plastics Corp. (??) to push up the weighted index to the highest level for the day at the close, the dealers added.
"These large-cap stocks moved higher as bargain hunters took advantage of their relatively low share prices following recent consolidation," Mega International Investment Services Corp. analyst Alex Huang said.
"The market also got a boost from ample liquidity, in particular as fears over an immediate rate hike by the U.S. Federal Reserve are fading," Huang said, referring to disappointing U.S. job data for August.
Largan, one of the most important suppliers to Apple Inc., gained 1.54 percent to close at NT$5,935.00 to remain the most expensive stock in the local market, amid hopes that the launch of the next-generation iPhones, likely to take place Sept. 12, will boost its shipments for the rest of the year.
Also in the high-tech sector, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), which is believed to supply the A11 processor for the new iPhones, rose 0.23 percent to end at the day's high of NT$218.00. off an early low of NT$216.50. The most heavily weighted stock in Taiwan served as an anchor to stabilize the broader market.
Underperforming the weighted index, Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, closed unchanged at NT$116.50. Hon Hai is second to TSMC in terms of market capitalization.
In the old economy sector, Formosa Plastics Corp. (??) rose 0.85 percent to close at NT$95.30, and Formosa Chemicals & Fibre Corp. (??) added 0.84 percent to end at NT$95.50.
Among the gaining financial stocks, CTBC Financial Holding Co. (???) rose 0.52 percent to close at NT$19.50, and China Life Insurance Co. (??) added 1.50 percent to end at NT$33.85.
Despite Tuesday's gains, the closing level remained shy of an intraday high of 10,619 points seen Aug. 8 for this year.
"Market sentiment remained haunted by worries over the political unease in the region" after North Korea's latest nuclear bomb test, Huang said.
"Moreover, as valuations on Wall Street remain high, many investors at home and abroad have concerns over a possible technical pullback and are reluctant to chase prices for now," Huang added.
Source: Focus Taiwan News Channel