Shares in Taiwan ended higher on Wednesday but the gains were capped by anemic turnover as foreign institutional investors stayed away from the market after the New Year holiday, dealers said.
The market opened up 6.64 points in a reaction to the upward momentum on Wall Street overnight and moved closer to the 9,300-point level, but the main index retreated from the day's high on profit-booking.
However, the market still managed to close higher for the second business day of the year on Wednesday in cautious trading before the six-day Lunar New Year holiday at the end of this month.
The weighted index on the Taiwan Stock Exchange (TWSE) closed up 14.08 points, or 0.15 percent, at 9,286.96 on Wednesday, having moved between 9299.62 and 9266.03 points, on turnover of NT$55.928 billion (US$1.726 billion).
In the electronics sector, shares in contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???) the most heavily weighted stock on the local market, remained unchanged, closing at NT$183.00, while Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, edged down 0.1 percent to close at NT$84.20.
Shares in Largan Precision Co. (???), a smartphone camera lens supplier to Apple, lost 0.39 percent to end at NT$3,780.00.
The Taiex has been in correction mode, trading in a narrow range, Hua Nan Securities Co. Chairman David Chu (???) said, suggesting that the market's low trading volume may be limiting its momentum despite a strong rebound in the U.S. stock market.
Source: Focus Taiwan News Channel