Taipei-Taiwan's shares extended strength from a day earlier to breach the 10,800-point mark in the mid-morning session Wednesday as the financial sector kept moving higher amid continued bargain hunting, dealers said.
Buying spread, with investors selecting "Apple concept stocks," pushing up the broader market as investors held hopes that the premium iPhone X will boost these Taiwanese suppliers' shipments in the fourth quarter of this year and even into the first quarter of next year, dealers said.
As of 10:49 a.m., the financial sector had gained 1.48 percent after a 2.75 percent increase recorded on Tuesday as bargain hunters continued to pick up stocks in the sector, which has been a market laggard for a long time.
The weighted index on the main board was up 90.25 points or 0.84 percent at 10,869.49 points on turnover of NT$93.29 billion (US$3.10 billion).
The main board's strength on Wednesday followed a 1.08 percent increase seen on Tuesday. Investors on Wednesday were encouraged by a higher Wall Street, where the S&P 500 index hit a record high to close up 0.69 percent, and the Dow Jones Industrial Average ended up 0.65 percent overnight. Buying accelerated to push up the weighted index to breach 10,800 points and even 10,858 points, an intraday high on Nov. 6, dealers said.
"Today, the financial sector continued to post gains, although the strength of the sector today was shy of yesterday's," Ta Ching Securities analyst Andy Hsu said. "More importantly, buying rotated to select Taiwanese suppliers of Apple Inc. to help the main board stand above 10,800 points now."
Among the gaining financial stocks, Fubon Financial Holding Co. (???) had risen 2.58 percent to NT$51.60, and Cathay Financial Holding Co. (???) had added 1.86 percent to NT$54.80. The two are the top two stocks in the financial sector in terms of market capitalization.
In the bellwether electronics sector, which had added 0.7 percent, Cather Technology Co. (??), a metal casing supplier to Apple, had risen 3.60 percent to reach NT$345.00 per share, and Largan Precision Co. (???), a smartphone camera supplier for the iPhone's production, had gained 1.72 percent to NT$5,610.00.
"It seemed market sentiment has improved a lot after a strong showing on Tuesday and Wednesday," Hsu said. "If the electronics sector is able to gain further, the upturn on the broader market will continue."
But Hsu said investors should stay alert over the future movement on Wall Street since it remained to be seen whether a tax reform bill in Washington will clear the floor of the U.S. Senate by the Christmas holiday.
"The development of the U.S. tax reform will dictate the performance of the U.S. market and in turn influence global markets, including Taiwan," Hsu said.
Source: Focus Taiwan News Channel