Taipei shares close off highs as profit-taking halts market rally - UPDATE 2 |
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Published
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Mon, 27 Aug 2007 07:40
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TAIPEI (XFN-ASIA) - Share prices closed higher but with pared gains as late profit-taking and stop-loss selling put a lid on an early rally spurred by a robust Wall Street performance before the weekend following a stronger-than-expected reading on new US homes sales for July.Gains in global markets on easing worries over the US subprime mortgage crisis also encouraged local investors to buy shares in early trade or stay close to the market.But the local bourse lost steam in late trade on technical pressure while investors waited for more companies here to disclose their earnings results for the first half.The weighted index closed up 28.22 points or 0.32 pct at 8,718.31, having traded between 8,849.96 and 8,704.59.Turnover was 117.54 bln twd.Decliners outnumbered advancers 922 to 720, with 260 stocks unchanged.A total of 30 stocks closed limit-up, while 12 were limit-down.The transport sector was up 1.50 pct cement up 1.15 pct and electronics up 0.47 pct.The retailing sector was down 1.50 pct, food down 1.08 pct and financial down 0.10 pct.The Taiwan dollar ended the morning session at 32.995/dollar, compared with the previous close of 32.980.Frank Lin, senior vice president with Fubon Securities, said pressure for a correction was building up as the index advanced further away from its recent lows at around 8,000 points.'Profit-taking pressure came from those investors who built their portfolios at the recent lows, while stop-loss selling pressure was from those that had increased their exposures at the highs when the market was at around 8,800 points or higher.'He said investors were reluctant to chase prices much higher as concerns over a global credit crunch have not been completely digested by the market.'Technical pressure (here) and factors from foreign markets will be among the main variables affecting the local bourse going forward,' Lin added.Hon Hai Precision Industry Co Ltd closed up 10.50 twd, or 4.57 pct, at 240.50 after going ex-dividend, with sentiment bolstered by robust earnings prospects and news that the company is open to potential cooperation with many others, China's Alibaba.com Corp included.Vanguard International Semiconductor Corp rose 0.65 twd to 28.45 on news that Taiwan Semiconductor Manufacturing Co Ltd's (TSMC) board of directors approved a proposal to increase its stake in the former by buying an additional 11 pct in block trade deals at a total price not exceeding 5.55 bln twd, or up to 29.70 twd per share. TSMC dropped 0.10 to 61.50.Cathay Financial Holdings gained 0.30 to 74.80 as it had posted no losses so far from its 3.32 bln twd indirect exposure to the US subprime mortgage market.China Steel Corp was flat at 39.30 following its decision to increase the domestic basic prices of its steel products by an average 0.48 pct for the fourth quarter to December.Quanta Computer Inc lost 2.70 twd, or 4.88 pct, to 52.60 after its board appointed CC Leung as president, replacing Michael Wang, who stepped down to pursue a personal career plan.Taishin Financial Holding Co Ltd added 0.05 twd to 16.45 after the company said its board has decided to appoint Lehman Brothers as its lead financial adviser for a share swap being considered with Chang Hwa Bank. Chang Hwa Bank added 0.25 to 19.85.Among other stocks in focus, Macronix International Co Ltd fell 0.50 twd to 21.00 on volume of 64.49 mln shares; Uni-President Enterprises Corp shed 0.50 to 33.70; Taiwan Cement Corp slipped 0.30 to 39.50; Far Eastern Department Store lost 0.70 to 30.40; while Evergreen Marine Corp added 0.10 to 20.90.adela.lin@afxasia.comal/net-xfnal/xfnntCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Taipei shares outlook - Slightly higher on US lead; upside limited 