Taiwan Stocks Close Up 428 Points, Turnover Hits 2-Month Low

Taipei, June 29 (CNA) Taiwan stocks rebounded Friday after a sharp decline the previous trading day, with the main index surging nearly 1,000 points intraday to a high of 45521.63, surpassing the monthly moving average of 45355. However, the gains narrowed in the afternoon, failing to hold the monthly average.

The weighted index closed at 44999.9, up 428.14 points, or 0.96%. Turnover fell to NT$997.514 billion, the lowest since April 29.

Key components saw mixed performance. Taiwan Semiconductor Manufacturing Co. (TSMC) closed at NT$2370, up NT$30 (1.28%). Delta Electronics closed at NT$1905, up NT$95 (5.25%). Hon Hai Precision Industry Co. (Foxconn) fell NT$2 to NT$246.5, down 0.80%.

Drone concept stocks also performed well. Ray-Tron Technology closed at NT$154.5 and Coretronic Corp. closed at NT$79, both hitting their upper price limits.

Other stocks that reached their upper price limits included E Ink Holdings (元太) at NT$214.5, Leadis Technology (光鼎) at NT$20.05, Chi Mei Corporation (中纖) at NT$12.25, PharmaEssentia Corporation (藥華藥) at NT$1270, Winstone Enterprise (崇越) at NT$539, and Material-KY (材料*-KY) at NT$47.85.

Huang Kuo-wei, deputy general manager of Mega International Investment Trust, told CNA that the market's weak rebound Friday, failing to reclaim the monthly moving average with low turnover below NT$1 trillion, suggests that further gains are needed in the coming days to support the market.

Huang noted that since the fourth quarter of last year, a breach of the monthly moving average has often led to consolidation periods exceeding one month. He warned that selling pressure could emerge if the market fails to return above the monthly average in the next few days. This week, investors will be watching U.S. non-farm payroll data, followed by U.S. inflation data next week. Additionally, the upcoming investor conference by Nanya Technology on July 10, amid memory chip shortages, will be another key indicator. (Editor: Chang Chun-mao) 1150629)