Taiwan Stocks End Flat; technological gains compensate for the actions of the old economy
Taipei, Oct 22 (CNA) Taiwan stocks closed little change on Friday as large-cap tech stocks rose while old economy stocks lost ground.
The market faced strong technical resistance as the Taiwan Stock Exchange’s benchmark Taiex approached 17,000 points, and investors remained concerned about rising yields on U.S. Treasuries in a downturn. backdrop of mounting inflationary pressures, brokers said.
The Taiex finished down 0.77 points to 16,888.74, after moving between 16,800.49 and 16,932.89. The turnover amounted to NT $ 281.57 billion (US $ 10.09 billion).
The market opened 10.81 points and quickly reached the day’s high almost 17,000 points behind the benchmark electronics sector after a 0.62% increase on the high-tech Nasdaq and an increase of 1.12% in the Philadelphia Semiconductor index overnight, dealers said.
The selloff then followed to push the Taiex into negative territory before bargain hunters became active to pick up tech stocks, offsetting the pullback in old economy stocks, they said.
“Prior to the 60-day moving average of 17,068, high technical hurdles existed,” said Lu Chin-wei, analyst at Hua Nan Securities. “It was no surprise that the Taiex came under downward pressure as they approached 17,000 points today.
“Fortunately, the electronics industry has remained resilient as heavyweights such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC) recouped their initial losses,” Lu said.
TSMC, the most weighted stock in the local market, rose 0.67% to close at NT $ 600.00. Led by TSMC, the electronics sector finished up 0.64% and the semiconductor sub-index rose 0.91%.
TSMC’s purchase extended to other semiconductor stocks. United Microelectronics Corp., a smaller contract chipmaker, closed up 0.52% at NT $ 58.30, and IC designer MediaTek Inc. gained 1.42% to close at 926, 00 NT $.
Novatek Microelectronics Corp., which provides drive integrated circuits for flat panel displays, rose 2.40% to close at NT $ 405.00.
Also in the electronics sector, PC brand Asustek Computer Inc. rose 2.01% to close at 356.00, while iPhone assembler Hon Hai Precision Industry Co. resisted the rally. overall technology, falling 0.46% to close at NT $ 107.50.
HTC Corp., a smartphone supplier, jumped 8.81% to close at NT $ 52.50 amid optimism about its efforts to develop virtual reality gadgets after unveiling its latest Vive wearable immersive glasses Flow earlier this week.
The action rose for the seventh consecutive session.
Resellers said HTC had recently benefited from the so-called “metaverse” concept discussed by Facebook CEO Mark Zuckerberg since July. It refers to a digital world where people can move between devices and communicate in a virtual environment.
“While the electronics sector has continued to serve as the dominant sector in the current market, attracting significant turnover, stocks in the old economy have remained largely in the doldrums,” Lu said.
“Even though commodities continue to strengthen on the rise in prices, many old economy stocks have still been sold, indicating that investors have remained cautious about the direction of these stocks before 17,000. points, ”Lu said.
Despite an upward trend in international crude oil prices, the petrochemical sector fell 1.63%.
Formosa Plastics Corp. lost 3.08% to close at 110.00, and Formosa Petrochemical Corp. lost 2.33% to close at NT $ 101.50, while Formosa Chemicals & Fiber Corp. gained 1.22% to close at NT $ 81.20, and Nan Ya Plastics Corp. 1.01% at NT $ 88.40.
The steel sector fell 2.95% despite higher product prices with China Steel Corp., Taiwan’s largest steel producer, ending down 1.77% at 33.30, and Tung Ho Steel Enterprise Corp. down 1.53% to close at NT $ 38.55.
In the transportation industry, where many marine titles are traded, Evergreen Marine Corp. lost 3.25% to close at NT $ 89.20, Wan Hai Lines Ltd. close at NT $ 85.10.
In addition, China Airlines fell 2.11% to close at NT $ 16.25.
“Revenue has remained weak, so even though buying has focused on tech stocks, large caps like TSMC still experienced limited gains,” Lu said. “The low turnover reflects concerns raised. by an upward trend in the benchmark 10-year Treasury yield, which could lead to volatility in the US markets. “
According to the Taiwan Stock Exchange, foreign institutional investors on Friday sold NT $ 902 million of shares in the market.