TAIEX closes at its highest point since mid-March

Shares closed higher yesterday, with heavyweight stocks following overnight gains on Wall Street, taking the main index to its best level in nearly three months, analysts said.

The TAIEX rose 68.47 points, or 1.1 percent, to 6,107.95, its highest closing level since 6,155.51 on March 14.

Trading volume rose to NT$102.53 billion (US$3.27 billion) from Thursday's NT$92.86 billion.

"Many empty-handed retail investors have started to return to the market," said Derek Lam, Fubon Securities Co (富邦證券) head of trading.

Andrew Teng (鄧安瀾), a Taiwan International Securities (金鼎證券) manager, said the index may test its year-to-date closing high of 6,267.52 if turnover holds steady around NT$100 billion or higher next week.

Taiwan Semiconductor Manufacturing Co (台積電), the world's largest made-to-order chip supplier, rose 1.4 percent to NT$57.7. Smaller rival United Microelectronics Corp (聯電) was up 3.3 percent to NT$22.2.

Financial shares made a modest 0.6 percent gain Friday.

The Financial Supervisory Commission is set to make hostile takeovers in the financial industry easier by lowering the minimum stake a company must take in its potential target, officials said.

Financial holding firms will soon be allowed to buy an initial stake of 5 percent in a targeted company on the open market to determine whether a deal is possible, compared with the current requirement of 25 percent for a long-term investment.

Cathay Financial Holding Corp (國泰金控), Taiwan's largest listed financial group, edged up 0.2 percent to NT$59.2, while number two Mega Financial Holding Co (兆豐金控) gained 0.5 percent to NT$20.8.