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Petrochemical stocks prop up wait-and-see TAIEX

Share prices closed 0.19 percent higher yesterday, steadying in line with Wall Street overnight after sharp losses on Thursday but with the tone cautious and trade modest, dealers said.

Sentiment was hesitant following a significant foreign investor sell-off but petrochemical stocks outperformed on expectations they will be the beneficiaries of record high oil prices.

The key upcoming issue will be whether the US Federal Reserve continues to hike interest rates in the face of rising inflation pressures, in part due to rising oil prices.

The weighted index closed up 11.48 points at 6,043.95, off a low of 6,018.63 and a high of 6,054.75, on turnover of NT$56.60 billion (US$1.82 billion).

Declines led gainers 439 to 408, with 165 stocks unchanged.

"Now the focus will be oil prices on the global front and interest rate action in the US," said Cooper Liao, an assistant vice president with Primasia Securities.

While concerns over cross-strait relations following China's passage of the "Anti-Secession" Law (反國家分裂法) earlier this week will continue to cast a pall on the local bourse, investors have adopted a wait-and-see stance for now.

The US Fed's upcoming decision on interest rates and any similar measure by the local central bank at its quarterly board meeting next week will be crucial.

Taiwan Semiconductor Manufacturing Co (台積電) was steady at NT$59.90 but rival United Microelectronic Corp (聯電) lost NT$0.30 at NT$18.90 on disappointment at the board's proposal to pay a 10 percent stock dividend for last year.

Hon Hai Precision Industry (鴻海精密) was down NT$3 at NT$138 after it priced an overseas share issue at a 3 percent discount.
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