TAIPEI (XFN-ASIA) - Share prices closed sharply higher, taking a cue from
Wall Street's gains after a better-than-expected US regional manufacturing
activity survey and further falls in global commodity prices, dealers said.
Investors were also betting on an extended market upswing after the
presidential election in Taiwan this weekend that is expected to usher in a more
China-friendly administration, they said.
The weighted index closed up 187.37 points or 2.25 pct at 8,524.99, after
moving in a range between 8,412.52 and 8,539.91.
For the week, the index had a cumulative gain of 363.60 points, or 4.46 pct.
Turnover today was 171.36 bln twd.
"More investors jumped on the bandwagon because they expect a further
upswing to 9,000 points next week," Capital Securities vice president Alan Tseng
said.
Despite the ban on opinion polls in the run-up to the election, investors
voted for Ma Ying-jeou of the opposition Kuomintang, who has promised to pursue
closer economic links with mainland China, he said.
Tseng said foreign investors, who have sold more than they bought lately,
are expected to join their local counterparts in the buying binge from Monday -
if the election result turns out the way as is now widely anticipated.
However, profit-taking is likely to set in after the post-election rally
runs its course over the next couple of sessions, he said.
"Odds of a pullback to around 8,200 points are high after the celebration is
over," Tseng said.
Risers led decliners 1,680 to 430, with 308 stocks unchanged.
A total of 22 stocks closed limit-up and six were limit-down.
Leading the gainers were property-backed shares and others stocks seen as
major beneficiaries from a better Taiwan-China relationship. Cement was up 4.50
pct, tourism rose 4.10 pct, and textiles climbed 3.05 pct.
Financials were up 2.63 pct, electronics gained 2.51 pct,
plastics/petrochemicals advanced 1.88 pct, and construction rose 0.75 pct.
Paper underperformed with a 0.26 pct decline.
The Taiwan dollar closed the morning at 30.618/US dollar, compared with the
previous close of 30.692.
Taiwan Cement gained 3.10 twd or 5.77 pct to 56.80, Ambassador Hotel rose
3.25 twd or 6.74 pct to 51.50, and Far Eastern Textile added 2.70 twd or 5.27
pct to 53.90.
Cathay Financial was up 2.00 twd or 2.50 pct at 81.90 and Shin Kong
Financial was 1.10 twd or 4.87 pct higher at 23.70.
TSMC was up 2.20 twd or 3.51 pct at 64.80 and UMC was 0.55 twd or 3.09 pct
higher at 18.35.
Amtran Technology was limit-up 1.80 twd or 7 pct at 27.60 on a report that
South Korea's LG Display is considering buying 30 pct of the LCD TV maker.
MediaTek was up 18.00 twd or 4.75 pct at 397.00 after proposing a 19.00 twd
cash dividend plus a 1 pct stock dividend for 2007.
Yageo was 0.22 twd or 2.22 pct higher at 10.15 after reporting another share
repurchase this week.
Chunghwa Telecom inched up 0.30 to 76.00, subdued by news that authorities
have rejected its plan to take about 15 pct of Global Mobile, which won a permit
to offer WiMAX services last year.
Tatung gained 0.20 at 21.60, off early highs as profit-taking emerged to cap
its recent dramatic gains driven by share purchases by Chunghwa Picture.
Chunghwa Picture was down 0.03 twd at 9.97.
(1 usd = 30.60 twd)
philip.wang@afxasia.com
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