Taipei, May 25 (CNA) Shares in Taiwan staged a moderate technical rebound Monday after slumping Friday as bargain hunters bought into select market heavyweights, especially in the bellwether electronics sector, dealers said.
Turnover remained thin, however, as many investors stayed on the sidelines waiting to see how tensions between Washington and Beijing play out after China unveiled plans to impose national security laws on Hong Kong to tighten its grip on the territory, dealers added.
The weighted index on the Taiwan Stock Exchange (TWSE), the Taiex, closed up 60.03 points, or 0.56 percent, at 10,871.18, after moving between 10,719.25 and 10,874.54.
Turnover was NT$146.074 billion (US$4.87 billion).
The market opened up 1.79 points and quickly moved higher within minutes before tumbling to the day’s lows in the next half hour amid continued concerns over U.S.-China ties, dealers said.
Buying then re-emerged, pushing the market into positive territory in the afternoon and to nearly the day’s high at the close as investors rushed to pick up large tech stocks and select financial shares.
“I think local investors were the ones driving today’s gains as foreign institutional investors remain wary of more volatility in global markets at a time of rising U.S-China tensions,” Ta Chan Securities analyst Jerry Chen said.
Despite the gains in the Taiex, foreign institutional investors were net sellers of NT$4.57 billion in shares Monday, according to the TWSE.
After a 1.79 percent plunge Friday, “local investors tended to take advantage of the battered stocks, with big tech stocks in focus,” Chen said.
In the electronics sector, which rose 0.66 percent to 478.61, integrated circuit designer MediaTek Inc. rose 4.07 percent to close at NT$460.00, and passive electronics components supplier Yageo Corp. closed 1.21 percent higher at NT$376.00.
Bucking the upturn, contract chipmaker Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, ended unchanged at NT$292.00.
Hon Hai Precision Industry Co., which assembles smartphones for Apple and other brands, also closed unchanged at NT$73.60.
Bargain hunting also helped the financial sector gain 0.21 percent to close at 1,221.70, with CTCB Financial Holding Co. closing up 1.02 percent at NT$19.75, and Yuanta Financial Holding Co. finishing 0.93 percent higher at NT$16.30.
In the old economy sector, China Steel Corp., the largest steel maker in Taiwan, rose 0.26 percent to close at NT$19.65, and Eclat Textile Corp. gained 1.87 percent to end at NT$300.00.
“The Taiex closed above the 20-day moving average of 10,829 today, making further gains possible in the near term,” Chen said. “But any upturn will be capped amid concerns over the regional political unrest,” Chen said.