TAIPEI: Shares in Taiwan ended lower Friday in consolidation mode, but turnover expanded as foreign institutional investors cut their holdings before MSCI index adjustments took effect after the market close, dealers said.
Exchange traded funds (ETFs) issued in Taiwan and linked to A shares in China fell sharply as investors here took cues from a plunge in China’s equity market a day earlier, dealers said.
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The weighted index on the Taiwan Stock Exchange ended down 11.77 points, or 0.12 percent, at 9,701.07, after moving between 9,693.00 and 9,747.27. Turnover totaled NT$140.39 billion (US$4.57 billion) during the session.
The market opened up 0.26 percent and rose to the day’s high on follow-through buying, but with the index moving closer to the nearest technical resistance at around 9,750 points, investors started pocketing their gains, with the selling focused on electronics and financial heavyweights, dealers said.
“The market moved in a narrow range throughout the session on a lack of any indications,” Concord Securities analyst Kerry Huang said. “But the trading volume increased ahead of the MSCI index adjustment, which took effect after the market close.”
The MSCI indices are usually closely watched by foreign institutional investors, who tend to adjust their portfolios based on MSCI changes, dealers said.
