Shares ended higher for a third straight session yesterday, as the main index returned to levels last recorded before the disputed March 20 election.
Investors bought select technology stocks with solid fundamentals, helping the TAIEX to close up 85.85 points, or 1.3 percent, to 6,880.18. It was the index's highest closing since March 9, when it ended at 6,973.90.
Gainers outnumbered decliners 480 to 346 with 149 stocks unchanged in trading valued at NT$181.15 billion (US$5.5 billion), compared with NT$184.31 billion on Tuesday.
"Whenever there are dips, buying is strong and funds are focusing on electronics shares," said Chiang Cheng-hsun, a deputy manager at MasterLink Securities Consulting.
Flat-panel-display makers did well, reflecting solid panel prices. Earlier this week, ABN Amro said in a report that panel prices are expected to be steady this month, compared with the firm's original expectations of slight falls.
AU Optronics Corp (友達光電), the nation's largest flat-panel maker, rose 6.6 percent to NT$73. The second-largest maker of flat panels, Chi Mei Optoelectronics Corp (奇美電子), gained 6.3 percent to NT$76.
Walsin Technology Corp (華新科技), a passive component maker, rallied by almost the daily 7 percent limit to NT$34.70 on hopes product prices might rise later this year amid a recovery in the technology sector. Passive components are essential for use in electronic products.
Also helping sentiment was the view the political scene should remain relatively calm before the middle of next month, when a vote recount is expected for the presidential election.
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