Shares closed 1.7 percent higher yesterday as "old-economy" industrials and financials outperformed electronic stocks after the central bank announced a higher-than-expected hike of 25 basis points in key interest rates on concern record oil prices may cause inflation to accelerate, dealers said.
The central bank said on Thursday that it was increasing the discount rate on 10-day loans to commercial lenders to 1.625 percent, effective yesterday.
TRANSPORTATION
The TAIEX closed up 99.66 points at 5,945.35 on turnover of NT$102.53 billion (US$3.02 billion). The index gained 0.9 percent for the week.
Risers led decliners 494 to 185, with 135 stocks unchanged. A total of 22 stocks closed limit-up and 10 were limit-down.
The transportation sector was up 5.02 percent, textiles rose 3.72 percent, plastics/petrochemicals added 3.18 percent, cement 2.88 percent, paper 2.41 percent and financials 2.15 percent while steel gained 2.07 percent.
The electronics sector was up 0.81 percent.
DISPLAY PANELS
Dealers said that while old-economy companies -- cement, plastics and paper -- still look attractive, thin-film-transistor liquid crystal display (TFT-LCD) panel makers remained under pressure as investors take on board concerns about oversupply and increasing competition.
Cathay Financial Holding Co (
Taiwan Semiconductor Manufacturing Co (
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