Shares ended higher yesterday on suspected buying of financial stocks by government funds and after two weekend legislative election rallies ended peacefully, dealers said.
The TAIEX closed 25.90 points, or 0.4 percent, higher at 5919.17.
Turnover totaled NT$56.20 billion (US$1.75 billion), with 359 stocks closing higher, 267 lower and 193 unchanged.
"Many investors were relieved the rallies ended without any conflict," said Cooper Liao, a vice president at Primasia Securities.
Liao said government-linked funds began buying selected shares last week and are expected to continue doing so until Saturday's election is over.
Year-end window-dressing by fund managers and conglomerates should also support the market in the last weeks of the year, he said.
Financial stocks ended 0.7 percent higher as a whole, with government-controlled banks and financial groups among the most active.
Taiwan Business Bank (
Taishin Financial Holding Co (
Chunghwa Telecom Co (