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 (
Taiwan Semiconductor Manufacturing Co (