logo
  

Tech Shares Likely To Spur Taiwan Stock Market

The Taiwan stock market on Tuesday ended the two-day slide in which it had plunged almost 650 points or 4 percent. The Taiwan Stock Exchange now sits just above the 16,060-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The TSE finished slightly higher on Tuesday following gains from the technology stocks, weakness from the cement companies and a mixed picture from the financials.

For the day, the index rose 12.78 points or 0.08 percent to finish at 16,061.70 after trading between 15,734.44 and 16,071.50.

Among the actives, Cathay Financial slumped 1.19 percent, while Mega Financial collected 0.53 percent, CTBC Financial improved 0.92 percent, Fubon Financial dropped 1.03 percent, First Financial climbed 0.96 percent, E Sun Financial retreated 1.14 percent, Taiwan Semiconductor Manufacturing Company shed 0.38 percent, United Microelectronics Corporation rallied 2.09 percent, Largan Precision soared 3.51 percent, Catcher Technology surged 3.67 percent, MediaTek advanced 0.86 percent, Delta Electronics declined 1.52 percent, Novatek Microelectronics spiked 3.31 percent, Nan Ya Plastic lost 0.35 percent, Asia Cement dipped 0.32 percent, Taiwan Cement sank 0.90 percent and Hon Hai Precision and Formosa Plastic were unchanged.

The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.

The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.

The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.

Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.

Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT