Taiwan stocks will eventually reach cap on inflation concerns

Taipei, October 14 (CNA) Taiwan shares closed at highs on Thursday, but the rise was limited by strong technical resistance after the mainboard temporarily broke through 16,500 points, dealers said. rice field.

After the U.S. reported a 5.4% year-on-year rise in the Consumer Price Index (CPI) in September, many investors are chasing prices for fear of rising inflationary pressure, despite the first rise in the index. They said they couldn’t.

The Taiwan Stock Exchange (TWSE) weighted index, Taiex, moved between 16,347.88 and 16,519.96 and eventually reached 16,387.28, 39.29 points (0.24%). Total sales were NT $ 256.35 billion (US $ 9.12 billion).

According to dealers, the market rose 0.27% and quickly turned high, surpassing 16,500 points in the early morning session and then continuing to sell, pushing Thai X into the negative territory by noon.

In the afternoon session, shipments began to pick up, pushing the wider market back into the positive territory, but profits across the mainboard were limited by the sale of the last groove, dealers added.

Hua Nan Bank analyst Kevin Sue said, “It seems that there was a high technical hurdle above 16,500 points. It is natural that the motivation to chase the price was low.”

“Many local investors are worried that the Federal Reserve Board will move at a faster pace to get money back from the market,” Sue said. We simply seized the latest CPI growth. “

Minutes of the September policy-making meeting, released Wednesday, suggest that the Fed may begin curtailing asset purchases in November.

“The tech sector has abandoned some of its previous gains as large-cap stocks such as contract chip maker Taiwan Semiconductor Manufacturing (TSMC) have fallen below their previous highs,” Sue said.

TSMC, the heaviest stock in the local market, closed at NT $ 573.00, up 0.35% after hitting a high of NT $ 579.00. The electronics index ended at 0.19 percent at 770.85 from a high of 779.38.

“The market expected TSMC to give a positive lead at today’s investor conference, but many investors are reluctant to take great care to increase their stake,” Sue said. “.

After the market closed, TSMC announced that third-quarter net income reached a record high of NT $ 156.26 billion, an increase of 16.3% from the previous quarter and an increase of 13.8% from the same period last year.

Among memory chip suppliers boosted to outperform the wider market by bargain hunting for a relatively low rating, Nanya Technology Corp. surged 4.88% to close at NT $ 62.30 and Winbond Electronics Corp. surged 5.00% and closed at NT $ 25.20.

Apple Inc.’s supplier could cut iPhone shipments in 2021 and end at NT $ 1,970.00 due to a global chip shortage with smartphone camera lens maker Largan Precision Co. I was pressured to report that there was.

However, shares in Hon Hai Precision Industry Co., an iPhone assembler second only to TSMC in terms of market capitalization, rose 0.95% to end at NT $ 106.50. “Hong Hai has benefited from his efforts in developing electric vehicles,” Sue said.

The transport sector, where many major shipping stocks are traded, showed a technological recovery, up 2.73 percent. In this sector, container freight carrier Wan Hai Lines rose 6.13% to close at NT $ 164.50, while rivals Yang Ming Marine and Evergreen Marine rose 4.41% and 2.58% to NT $ 92.40 and NT, respectively. I closed the transaction. $ 95.30.

“Other old economic stocks were mixed, as investors feared that a surge in inflationary pressure would negatively impact the recovery of the global economy and reduce demand,” Sue said.

Among raw material stocks, Formosa Plastics Corp. fell 1.30% to close at NT $ 114.00 and Taita Chemical Co. fell 2.09% to close at NT $ 35.10. In addition, Tainan Spinning Co. Closed unchanged at NT $ 20.85, but another textile brand, Far Eastern New Century Corp., closed at NT $ 29.05, down 0.68%.

In the financial sector, which fell 0.05%, Fubon Financial Holding fell 0.13% to close at NT $ 74.40, while Cathay Financial Holding rose 0.71% to close at NT $ 56.60.

“As inflation concerns grow, investors should continue to pay attention to the US benchmark 10-year Treasury yield movement,” Sue said. “In addition, the ongoing earnings seasons in the country and the United States are even more noteworthy.”

According to TWSE, foreign institutional investors bought a net $ 3.43 billion worth of shares on the mainboard on Thursday.

(By Francis Fan)

Final item / AW Taiwan stocks will eventually reach cap on inflation concerns

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