TAIEX rises on possible government intervention

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 (台灣企銀) rose 1.2 percent to NT$12.30 and First Financial Holding Co (第一金控) rose 2.2 percent to NT$27.40.

Taishin Financial Holding Co (台新金控) climbed 2.1 percent to NT$29.40, after the months-long wrangle over the firm's chairmanship ended with Thomas Wu (吳東亮) retaining his position.

Chunghwa Telecom Co (中華電信) closed unchanged at NT$63.5. The company's labor union on Sunday voted for a strike to protest the company's privatization plan. However, a union leader later said it will continue to negotiate with the management before going on strike.