TAIEX follows US markets' lead, hits eight-week high

Shares ended at their highest level in eight weeks yesterday, following gains in US stocks overnight, analysts said.

The TAIEX rose 67.86 points, or 1.1 percent, to 6,039.48. The closing level yesterday was the highest since the index finished at 6,048.74 on March 28.

Turnover rose to NT$92.35 billion (US$2.92 billion) from NT$79.55 billion on Wednesday.

Shares rose across the board, with 670 ending stronger, 202 weaker and 144 settling unchanged.

Shares in Taiwan Semiconductor Manufacturing Co (台積電), the world's largest contract chipmaker, closed up 1.8 percent at NT$56.9. Global No.2 United Microelectronics Corp (聯電) gained 1.7 percent to NT$21.5.

Overall, electronics stocks advanced 1.0 percent.

However, some doubt the gains are sustainable.

"Given the relative weakness in index heavyweights, I think the rally today was driven by speculative buying," said Andrew Teng (鄧安瀾), a manager at Taiwan International Securities (金鼎證券).

The two contract chipmakers' rises were small compared with the gains in many small to medium-sized stocks.

Electronic component maker Yageo Corp (國巨) rose 3.4 percent to NT$12.1, while personal computer producer Twinhead International Corp (倫飛) jumped 6.9 percent to NT$5.74.

Petrochemical stocks surged after US oil futures spiked through US$54 a barrel on Wednesday, analysts said.

Taiwan Styrene Monomer Corp (台苯) closed up 6.8 percent at NT$18 and Grand Pacific Petrochemical Corp (國喬石化) soared 7 percent to NT$9.95.