Taiwan stocks rose 0.46 percent on Friday to a 3-1/2-week closing high, led by shares such as Hon Hai, but Asustek dropped after a joint venture with smaller rival Gigabyte was called off. The main TAIEX share index gained 35.65 points to end at 7,859.32, continuing a rebound from the year's trough hit on March 5.
However, turnover fell to T$109.02 billion ($3.3 billion) from T$111.57 billion the previous day. With investors betting on growing tech demand, the electronics sub-index gained 0.42 percent as Hon Hai Precision Industry Co rose 1.13 percent. The financial sector advanced 0.38 percent.
"The market is seeing more downside than upside now, even though we had more of a technical rise today. In the short-term there is no catalyst to move the market," said Primasia Securities analyst Takao Fujiki. On the technical charts, Taiwan's 14-day relative strength index approached the overbought territory at 70.12, implying that selling pressure could emerge soon, said Fujiki.
Shares in Asustek Computer and Gigabyte Technology were down 3.92 percent and 1.3 percent, respectively, after the world's two largest motherboard makers said their venture plan would be called off for now after Gigabyte's clients, suppliers and investors expressed concern the plan could harm its brand name.
Goldman Sachs analyst Henry King said in a research report on Friday the plan to halt the deal could "introduce risks of further price wars among major motherboard makers".
BenQ Corp dropped 3.85 percent after German insolvency officials said they are seeking to make the Taiwan mobile phone maker pay about 500 million euros to bondholders who are seeking 1.2 billion euros in connection with its insolvent German mobile phone unit, the Economic Daily reported. Taiwan chip maker Winbond Electronics fell 1.27 percent, while Vanguard International gained 3.33 percent after Winbond said it plans to sell an 8-inch wafer fab to Vanguard.
Comments
Comments are closed.