Taiwan stocks close up 428 points, trading volume hits 2-month low

(CNA) Taiwan stocks plunged 1683 points last Friday and fell below the monthly moving average. Today, the Taiwan stock market rebounded, rising nearly 1,000 points intraday to a high of 45521.63 points, surpassing the monthly moving average of 45355 points. The gains later narrowed, and the monthly moving average was not recovered.

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

Key stocks included TSMC, which closed at NT$2370, up NT$30 (1.28%); Delta Electronics, which closed at NT$1905, up NT$95 (5.25%); and Hon Hai, which fell NT$2 to close at NT$246.5 (0.80% decrease).

Drone concept stocks, including Raydium (雷虎) at NT$154.5 and Coretronic (中光電) at NT$79, both hit their upper limit.

E-paper manufacturer E Ink (元太) closed at NT$214.5, LED manufacturer Lighten (光鼎) at NT$20.05, ethylene glycol producer Chi Mei Industrial (中纖) at NT$12.25, PharmaEssentia (藥華藥) at NT$1270, semiconductor and optoelectronic materials distributor Arcoa (崇越) at NT$539, and cellulose acetate and tow manufacturer Material-KY (材料*-KY) at NT$47.85, all hit their upper limit.

Huang Kuo-wei, Deputy General Manager of Mega International Investment Trust, told CNA in a phone interview that after the pullback last Friday and falling below the monthly moving average, the market saw a weak rebound today without recovering the monthly moving average. The trading volume was below NT$1 trillion, a recent low. If the market fails to continue rising and recover the monthly moving average in the coming days, it will be unfavorable for the market's performance.

Huang pointed out that since the fourth quarter of last year, a formal breach of the monthly moving average has often required more than a month of consolidation. If the market does not return above the monthly moving average in the next few days, selling pressure may emerge. This week, attention will be on the US non-farm payroll data, followed by US inflation data next week. Additionally, the memory chip shortage and Nanya Technology's (南亞科) investor conference on July 10 are also key indicators to watch. (Editor: Chang Chun-mao) 1150629

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