Shares end higher after government reforms announced

Shares ended higher yesterday after President Chen Shui-bian's (陳水扁) economic task force said it would seek major reforms to the financial sector before the end of 2006.

The TAIEX finished 8.9 points, or 0.2 percent, higher at 5,797.24 in dealings valued at NT$77.49 billion (US$2.29 billion).

Chen's economic advisers are seeking further privatization of government-controlled financial institutions and consolidation among financial holding companies to halve their number to seven by 2006.

The financial subindex led the main index higher, ending up 0.5 percent.

However, the bourse ended well off its intraday high of 5,849.18.

"Day traders locked in their profits. It was a good day for day traders," said Andrew Teng, a manager at Taiwan International Securities in Taipei.

The number of declining stocks outnumbered advancers 312 to 282 due to the pullback late in the session. Only 198 issues ended the day unchanged.

Investors generally remain nervous about high oil prices and an uncertain outlook for the technology sector, Teng said.

Taiwan Business Bank (台灣企銀), the most traded share, ended up just 0.4 percent at NT$12.15 after being 4.1 percent higher earlier in the day.

Chang Hwa Bank (彰化銀行) closed flat at NT$20.6, also on a heavy volume. SinoPac Holdings (建華金控) added 2.7 percent to NT$18.8.

The technology subindex ended 0.2 percent higher, with chip stocks outperforming. Taiwan Semiconductor Manu-facturing Co (台積電), climbed 0.9 percent to NT$43.20.