Shares in Taiwan closed slightly higher Wednesday after moving in a narrow range throughout the session, as the main board took a pause after rallying over the past three trading days, dealers said.
Sentiment turned cautious ahead of the release of the October consumer price index (CPI) in the United States later in the day, which could lead to a move by the U.S. Federal Reserve to adjust monetary policy, they said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 18.29 points, or 0.10 percent, at 17,559.65, after moving between 17,489.87 and 17,575.44. Turnover totaled NT$350.34 billion (US$12.65 billion).
The market opened up 7.73 points and continued to seesaw around the previous closing level for most of the session before contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, was the target of last ditch buying.
That vaulted the Taiex back into positive territory at the end of trading, dealers said.
"Before today, the local main board rallied three sessions in a row. Technically speaking, it was not surprising that the main board fell into consolidation," Cathay Futures Consulting analyst Tsai Ming-han said.
Over the previous three sessions, the Taiex rose 462.50 points or 2.71 percent.
"Many heavyweights, in particular in the bellwether electronics sector appeared muted," Tsai said. "As for TSMC, the stock consolidated despite the late session buying ahead of stiff technical resistance at around NT$620.00."
TSMC rose 0.16 percent to close at the day's high of NT$612.00 after coming off a low of NT$608.00. Led by TSMC, the electronics index ended up 0.25 percent to finish the day at 842.47, off a low of 837.19, with the semiconductor sub-index up 0.13 percent.
Among other semiconductor stocks, shares in United Microelectronics Corp., a smaller contract chipmaker, closed unchanged at NT$63.10, while integrated circuit designer MediatTek Inc. fell 2.04 percent to end at NT$958.00.
IC packaging and testing services provider ASE Technology Holding Co. lost 0.95 percent to close at NT$104.00.
Also in the tech sector, iPhone assembler Hon Hai Precision Industry Co. rose 0.93 percent to end at NT$109.00, and Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., gained 0.49 percent to close at NT$2,070.00. Power management solution provider Delta Electronics Inc. lost 0.38 percent to end at NT$265.00.
Dealers said the non-tech sector appeared mixed as investors continued to dump shipping stocks which had been favored by many retail investors, with buying rotating to airlines stocks.
In the transportation sector, which lost 1.00 percent, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, lost 1.64 percent to close at NT$120.00.
Wan Hai Lines Ltd. and Yang Ming Marine Transport Corp. fell 3.54 percent and 0.86 percent, respectively, to end at NT$177.00 and NT$115.00.
On the other hand, China Airlines surged 5.22 percent to close at NT$23.20, and EVA Airways rose 3.21 percent to end at NT$25.75.
Elsewhere in the old economy sector, Formosa Plastics Corp. lost 0.47 percent to close at NT$107.00, while Nan Ya Plastics Corp. fell 0.70 percent to end at NT$85.20.
In addition, Tung Ho Textile Co. surged 10 percent, the maximum daily increase, to close at NT$18.30, while another textile brand Far Eastern New Century Corp. ended unchanged at NT$29.90.
Kaohsiung-headquartered King's Town Construction Co. soared 10 percent to close at NT$41.15 amid optimism that TSMC's plan, announced on Tuesday, to build a wafer plant in Kaohsiung will result in the relocation of many engineers and other staffers, which could push up home prices.
In the financial sector, which rose 0.27 percent, Fubon Financial Holding Co. lost 0.14 percent to close at NT$73.00, but Cathay Financial Holding Co. rose 0.17 percent to end at NT$58.60.
"Today's turnover shrank as many investors stayed on the sidelines, waiting for the U.S. CPI data to gain a clearer picture about inflationary pressure and how the Fed could tighten its grip on monetary policy," Tsai said.
On Tuesday, turnover totaled NT$399.28 billion.
According to the TWSE, foreign institutional investors bought a net NT$1.04 billion worth of shares on the main board Wednesday.
Source: Focus Taiwan News Channel