Taiwan shares end slightly higher on moderate turnover

Taipei, Aug 19 (CNA) Stocks in Taiwan closed slightly higher on Friday as the tech sector struggled to recoup earlier losses, while old economy and financials stocks were largely mixed following a ‘a narrow range of moves in US markets overnight, dealers said.

Revenue remained subdued with many investors preferring to sit on the sidelines, showing their reluctance to chase prices for the time being amid caution over the rate hike cycle launched by the US Federal Reserve, the analysts added. dealers.

The Taiex, the weighted index of the Taiwan Stock Exchange (TWSE), ended up 12.02 points, or 0.08%, at 15,408.78, after trading between 15,346.26 and 15,458, 45. Revenue totaled NT$218.66 billion (US$7.28 billion).

The market opened down 2.40 points and fell more than 60 points to the low of the day in the morning session on follow-up selling from a session earlier when Taiex lost 0.44 %, the dealers said.

After 10 a.m., bargain hunters began buying large-cap semiconductor stocks, helping Taiex recoup earlier losses and trade in positive territory, but gains were capped at the end of the month. the session on concerns about an aggressive Fed, dealers added.

US Fed meeting

In minutes from July’s last policy meeting released on Wednesday, the Fed said it was determined to continue with rate hikes until inflation fell significantly, but that it could adjust the pace of its tightening depending on market conditions.

“There is no doubt that the cycle of rising rates will continue, which will support the US dollar and lead to the outflow of funds from the region,” said Kerry Huang, analyst at Concord Securities. “Under such circumstances, foreign institutional investors are expected to stay away from the local main board, which should make local investors wary.”

“Today, the Taiex continued its consolidation as the technology sector tried to recover from earlier weakness. Without any significant expansion in revenue, however, efforts were limited,” Huang added.

Tech stocks

The electronics sector rose 0.17% to close at 717.88 from a low of 715.26 as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) failed to maintain momentum. strength of its technical rebound, falling 0.19% to end at NT$519.00 after fluctuating between NT$517.00. and NT$523.00.

Among other major semiconductor stocks, United Microelectronics Corp., a small contract chipmaker, rose 1.18% to close at NT$43.00 after hitting a low of NT$42.50, and IC testing and packaging services provider ASE Technology Holding Co. gained 0.67% to end at NT$90.00 after a low of NT$89.10.

Additionally, dynamic random-access memory (DRAM) chip maker Nanya Technology Corp. rose 1.31% to close at NT$54.30, but smartphone IC designer MediaTek Inc. fell 1.28% to close at NT$693.00.

Also in the technology sector, iPhone maker Hon Hai Precision Industry Co., fell 0.89% to close at NT$111.00, while Yageo Corp, the world’s third-largest supplier of multilayer ceramic capacitors ( MLCC), rose 1.37% to close at NT$332.00. .

Excluding technology sector

“Trading in non-tech stocks also remained calm throughout the session, with the exception of some biotech stocks due to rotational buying,” Huang said.

Among the gaining biotech stocks, drug developer China Chemical & Pharmaceutical Co. rose 1.16% to close at NT$21.85, and test kit supplier Panion & BF Biotech Inc. gained 1.34%. % to end at NT$151.00, but Huang said their small weighting failed to boost the broader market.

Elsewhere in the old economy sector, China Steel Structure Corp. lost 1.17% to close at NT$59.00, Tung Ho Steel Enterprise Corp. fell 0.91% to close at NT$54.30 and Chung Hung Steel Corp. . China Steel Corp., Taiwan’s largest steelmaker, ended unchanged at NT$29.20.

Additionally, Formosa Plastics Corp. rose 0.11% to close at NT$94.30, and Nan Ya Plastics Corp. gained 0.57% to close at NT$71.00, while Evergreen Marine Corp., Taiwan’s largest containerized cargo shipper, rose 0.20% to close at NT. $98.00, but rivals Wan Hai Lines Ltd. and Yang Ming Marine Transport Corp. fell 0.50% and 0.12%, respectively, to end at NT$100.50 and NT$86.40.

Future data to consult

“Ahead of the Fed’s next meeting (September 20-21), investors should stay alert for upcoming economic data and other clues about what the U.S. central bank will do. Personal Consumption Expenditure (PCE) price index due on August 26,” Huang said.

According to the TWSE, foreign institutional investors continued to stay on the sell side, seeing net sales of stocks worth NT$7.31 billion on the main board on Friday after net sales of NT$7.34 billion. NT dollars on Thursday.

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