Sat, Dec 25, 2004 - Page 11 News List

Share prices close slightly higher on land tax proposal

AFP , TAIPEI

Taiwan share prices closed 0.36 percent higher Friday on the back of a firmer Wall Street overnight and the Cabinet's approval of proposed land and housing taxation laws, dealers said.

The tax issue allowed the construction sector to lead the broad market higher as the latest developments re-ignited hopes for cuts to the land increment tax but trade was thin as the market wound down for the year-end.

The weighted index closed up 21.75 points at 6,019.42 on turnover of NT$47.35 billion (US$1.47 billion).

Risers led decliners 505 to 167, with 181 stocks unchanged.

The construction sector was up 2.11 percent, electronics rose 0.34 percent and financials added 0.33 percent.

"[The] rally in the construction sector attracted investors," said Cooper Liao, an assistant vice president at Primasia Securities.

The thin turnover, however, reflected concerns China will draft an anti-secession law soon, which could provide the legal basis for the use of force against Taiwan should it declare independence.

"The key issue will be the details of the anti-secession law and the response from Taiwan," Liao said.

Among the construction stocks, BES Engineering Corp (中華工程) was limit-up 0.40 at NT$6.80, Goldsun Development & Construction Co (國產) rose 0.45 at NT$9.70 and Der Pao Construction Co (德寶建設) was limit-up 0.60 at NT$9.85.

Taiwan Semiconductor Manufacturing Co (台積電) was steady at NT$50.00 while United Powerchip Semiconductor Corp (聯電) rose 0.60 to NT$24.50 after announcing plans to invest in China.

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