Taiwan's stock market moved higher Tuesday, buoyed by support from foreign institutional investors for large-cap stocks.
The market opened slightly lower at 9,228.66, and drifted to the day's low of 9,224.45 before surging and closing up 53.57 points, or 0.58 percent, at the day's high of 9,287.77.
Turnover was NT$60.64 billion (US$1.93 billion).
Except for textile and construction shares, which slipped slightly, most other stock categories were higher.
The benchmark electronics sub-index was up 0.59 percent, led by smartphone camera lens maker Largan Precision Co. (???), which gained 1.82 percent to close at NT$3,910.
The most heavily weighted stock on the market, Taiwan Semiconductor Manufacturing Co. (???), rose 0.54 percent to close at NT187.00, while IC design company MediaTek (???) ended up 0.83 percent at NT$243.
Nanya Technology Corp. (???) closed 1.39 percent higher at NT$40.00 on rising DRAM prices.
Yuanta Securities Investment Consulting (????) analyst Shawn Hsueh (???) said money has returned to emerging markets since the U.S. Federal Reserve kept rates unchanged at a policymaking meeting last month, and Taiwan has been one of the favorite targets because of its relatively high dividend yields.
He said foreign institutional investors have traditionally remitted money back home in August and September but that this year they have recorded net inflows into Taiwan for four consecutive months since June.
The next key event to pay attention to, he said, was when listed companies begin unveiling their third quarter financial results on Nov. 15.
Though foreign institutional investors still have a favorable view of Taiwan's stock market, investors should be wary of possible foreign exchange losses by local exporters because of the Taiwan dollar's 2.9 percent appreciation against the U.S. dollar in the third quarter, which could affect their share prices.
Source: Focus Taiwan News Channel