Shares in Taiwan moved higher Tuesday, but the gains were limited as investors turned wary of a possible pullback due to stiff technical resistance at around 17,700 points, dealers said.
Market sentiment was also dampened by an online summit between U.S. President Joe Biden and his Chinese counterpart Xi Jinping (???) and caution before American retail heavyweights report their quarterly results later in the week.
The Taiex, Taiwan Stock Exchange's benchmark index, ended up 58.66 points, or 0.33 percent, at 17,693.13, after moving between 17,629.80 and 17,708.10. Turnover totaled NT$378.06 billion (US$13.61 billion).
The market fluctuated in a narrow range throughout the session, but when the Taiex breached the 17,700-point mark, some investors pocketed their gains, pulling the Taiex back down, dealers said.
"There were high technical hurdles ahead of 17,724, the intraday high of July 20, so it was not easy for the Taiex to move above the 17,700 mark today," Mega International Investment Services Corp. analyst Alex Huang said.
Although the market did not expect much from the Biden-Xi summit in terms of improved bilateral ties, "investors preferred to wait to see what the outcome of the meeting will be."
After the two presidents talked Tuesday morning Taipei time, international media described the virtual encounter as a "healthy debate" but one that did not yield any breakthroughs.
"Today, semiconductors largely took a pause and ended mixed. Buying rotated to PC related stocks," Huang said. The electronics sector rose 0.28 percent, and the semiconductor and computer sub-indexes rose 0.21 percent and 0.67 percent, respectively.
In the semiconductor sector, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) rose 0.33 percent to close at NT$610.00, and IC designer MediaTek Inc. gained 0.98 percent to end at NT$1,035.00.
But United Microelectronics Corp., a smaller contract chipmaker, fell 0.63 percent to end at NT$63.00, and IC packaging and testing services provider ASE Technology Holding Co. ended unchanged at NT$105.50.
Among the gaining PC stocks, Quanta Computer Inc., the world's largest notebook computer ODM service provider, rose 3.02 percent to close at NT$88.60 and another contract maker Wistron Corp. gained 1.04 percent to end at NT$29.05.
PC brand Acer rose 0.74 percent to close at NT$27.20, while rival Asustek Computer Inc. fell 1.25 percent to end at NT$354.50.
"While there was consolidation in the market, turnover didn't fall because of interest in shipping stocks," Huang said.
The transportation sector, which includes shipping companies, rose 3.34 percent.
Evergreen Marine Corp., the largest container cargo shipper in Taiwan, soared 6.70 percent to close at NT$119.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. closed 4.76 percent and 2.55 percent higher, respectively, at NT$110.00 and NT$161.00.
Buying was also seen among bulk cargo shippers. Sincere Navigation Corp. rose 3.33 percent to close at NT$29.50 and U-Ming Marine Transport Corp. added 1.11 percent to end at NT$54.80.
In addition, with border controls easing in several major economies, China Airlines continued to steam ahead, up 2.65 percent to close at NT$27.10, and EVA Airways surged 4.67 percent to end at NT$28.00.
Elsewhere in the old economy sector, Formosa Plastics Corp. lost 0.47 percent to close at NT$106.50, Formosa Petrochemical Corp. fell 0.97 percent to end at NT$102.00, and textile brand Far Eastern New Century Corp. shed 1.67 percent to close at NT$29.50.
Food maker Uni-President Enterprises Corp. rose 0.88 percent to end at NT$68.60.
In the financial sector, which rose 0.25 percent, Cathay Financial Holding Co. rose 0.50 percent to close at NT$60.00, and Mega Financial Holding Co. gained 0.74 percent to end at NT$34.20, while Fubon Financial Holding Co. closed unchanged at NT$74.00.
"Investors should closely watch for the quarterly results major American retailers report this week to get a clear picture of private consumption in the U.S. market amid COVID-19," Huang said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$7.69 billion in shares Tuesday.
Source: Focus Taiwan News Channel