Taiwan stocks rose 0.81 percent on Wednesday to their highest close in seven years, led by gains in firms such as Tatung that rely on domestic consumption and have large land assets amid recent gains in the local dollar. The main TAIEX ended up 72.78 points at 9,068.98 as major tech exporters also took heart from gains in US counterparts on Tuesday.
Turnover spiked to T$196.36 billion ($5.99 billion) from T$183.11 billion in the previous day. "The upward trend has been built and it won't be changed in the short term," said Alex Huang, a vice president at Mega International Securities. Growing optimism over tech demand has pushed the TAIEX 16 percent higher so far this year. "But we have to watch closely if buying by foreign investors slows or the Taiwan dollar weakens."
Topping the list of most active issues, home appliance maker Tatung Co Ltd jumped 6.21 percent, while Shinkong Synthetic Fibres shot up 4.35 percent. Both firms have large assets, whose value increases following a stronger local dollar. Financials, which also benefit from rising domestic consumption, finished up 0.57 percent.
Among winners in the tech sector, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's biggest contract chip maker, rose 0.98 percent. Electronics parts maker Hon Hai Precision Industry Co gained 1.21 percent, lifting the newly launched computers and peripherals sub-index up 0.4 percent.
Compal Electronics fell 0.83 percent even after local media reported it plans to invest $500 million on a notebook PC manufacturing facility in Vietnam. Synnex, a distributor of electronics products, dropped 1.88 percent even after a local newspaper reported that it had teamed up with Nokia in Taiwan as the cellphone giant's sole fulfilment distributor.
Comments
Comments are closed for this article.