Taipei, Taiwan shares moved higher but remained below the 10,000-point mark Thursday following a rally on Wall Street overnight.
The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, ended up 36.96 points, or 0.37 percent, at 9,945.31 after moving between 9,938.55 and 10,014.42. Turnover totaled NT$118.44 billion (US$3.86 billion).
The market opened up 50.12 points at 9,958.47 in a knee-jerk reaction to strong gains posted by U.S. markets following the midterm elections, where the Dow Jones Industrial Average closed up 2.13 percent, the S&P 500 index ended up 2.12 percent and the tech-heavy Nasdaq index ended up 2.64 percent Wednesday.
The Taiex at one point breached 10,000 points as investors moved in to pick up shares in the bellwether electronics sector, pushing the electronics sub-index up by over 1 percent at one stage, but selling pressure emerged, paring away much of their early gains.
Electronics shares ended 0.3 percent higher, pulling the broader board back to below the 10,000-point mark.
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, rose 1.07 percent to end at NT$236.50 after hitting a high of NT$237.5, while Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., lost 2.44 percent to close at NT$3,200.00 after hitting NT$3,395.00.
The financial sector outperformed the broader market, rising 0.99 percent. Cathay Financial Holding Co. gained 1.60 percent to close at NT$50.90, and Fubon Financial Holding Co. rose 1.19 percent to end at NT$50.90.
Under heavy selling pressure, the market is expected to move in consolidation mode in the short term before turnover increases and selling pressure is absorbed, according to equity analyst Wang Chao-li (???).
According to the TWSE, foreign institutional investors bought a net NT$2.97 billion-worth of shares during the trading session.
Source: Focus Taiwan News Channel