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Yulon Nissan Motor shares down as profit taking erases early gains
Central News Agency
2014-04-11 11:51 AM
Taipei, April 11 (CNA) Shares of Yulon Nissan Motor Co. fell into negative territory in late Friday morning trade as investors locked in their earlier gains that were built on the car maker's more than 80 percent month-on-month sales increase for March, dealers said. Still, the market has high hopes that Yulon Nissan will continue to benefit from the new models it unveiled in the first quarter in the hope of increasing sales in the coming months, dealers said. As of 11:12 a.m., shares of Yulon Nissan had dropped 0.77 percent to NT$385.00 (US$12.83), off an early high of NT$394.00. The weighted index on the Taiwan Stock Exchange was down 0.81 percent at 8,875.72 points. "The stock opened higher in reflection of its strong March sales," Asia Securities Investment Consultant analyst Chang Chih-cheng said. "After its early high of NT$394.00, profit taking set in as it moved closer to the nearest technical resistance at around the NT$400.00." The selling also reflected the weakness of the broader market, which followed Wall Street's overnight dive, trending lower. However, Yulon Nissan shares appeared resilient compared with the broader market's losses. "Yulon Nissan's March sales data was impressive as it has been gearing up to unveil new models to boost buying interest," Chang said. "The latest sales report defied conventional wisdom that March is a slow season for car makers." On Thursday, Yulon Nissan said that it posted NT$3.03 billion in consolidated sales for March, up 82.98 percent from February and 22.79 percent from a year earlier. In the January-March period, Yulon Nissan sales totaled NT$8.18 billion, up 7.69 percent from a year earlier. "The March sales beat an earlier market estimate of a 70 percent month-on-month increase after taking the launch of new models into account," Chang said. Chang said Yulon Nissan has secured orders for about 2,000 units of its new model Livina, which is expected to continue into April to contribute to the car maker's shipments. "I expect Yulon Nissan will have a good second quarter. The resilience of its share price reflected an upbeat mood. The stock may challenge NT$400 in the short term," Chang said. Meanwhile, other local auto makers also benefited from their launch of new models in the first quarter, which helped to boost sales of the entire car industry in the three month period. According to statistics from transportation authorities, car sales in Taiwan totaled 99,404 units in the first quarter, up 10.1 percent. In March alone, sales rose by a monthly 65 percent to 34,307 units and grew 24.9 percent year-on-year. With the local auto business expected to enter a peak season in the second half of the year, the sector may achieve a goal of selling 400,000 cars in 2014, up from 378,000 units in 2013. (By Frances Huang)
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