Stocks closed up 0.35 percent yesterday but were off the highs as investors opted to lock in quick profits following an early rally made on Wall Street's overnight gains, dealers said.
They said the market opened strongly, with confidence getting a further boost from more positive US economic data but could not make that much ground given some concerns over the electronics sector outlook.
The TAIEX closed up 21.54 points at 6,108.99 to an 18-month high, on turnover of NT$115.32 billion (US$3.39 billion). The futures index shed 0.3 percent to 6130.
Risers led decliners 397 to 350, with 167 stocks unchanged. A total of 38 stocks closed limit-up and seven limit-down.
The market failed to hold most of its early gains as investors remained reluctant to push the upside much further for bellwether electronics, Teng Ke-hsin (鄧可欣), an analyst at SinoPac Securities Corp (建華證券), said yesterday.
"It is clear that few want to buy into electronics ... no matter how exciting technology shares might appear on NASDAQ," Teng said. "While there are valuation concerns to think about, it simply remains too early to talk about industry visibility for 2004."
Taiwan Semiconductor Manufacturing Co (TSMC,