Foreign investors' support helps local bourse close higher

Share prices closed 0.92 percent higher yesterday as continued foreign investor support offset a lackluster performance on Wall Street overnight, dealers said.

Short-covering also contributed to gains, with some investors forced to re-adjust their positions after an anticipated correction failed to materialize, they said.

The TAIEX closed up 55.87 points at 6,161.66, after moving between 6,121.21 and 6,170.47, on turnover of NT$82.46 billion (US$2.64 billion).

REGAINING MOMENTUM

"The market apparently regained momentum after a short period of consolidation in recent sessions," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president who serves mainly foreign institutions.

Though MSCI's hike in the weighting of Taiwan shares already took effect at the end of last month, foreigners have kept up their buying spree in the local bourse, he said.

Domestic institutions and small investors also seemed more avid about buying shares, but they appear to be favoring laggards that have attracted less attention among foreigners, he said.

CHIP STOCKS

Shares in Taiwan Semiconductor Manufacturing Co (台積電), rose 1.2 percent to NT$58.20, while rival United Microelectronics Corp (聯電) gained 2.2 percent to NT$23.20, after Texas Instruments issued its optimistic outlook in the US.

"Aside from the Texas Instruments factor, investors are also favoring these two stocks because TSMC will pay a dividend next week, and UMC will soon," said Daniel Liu, a trader at Ta Ching Securities (大慶證券).