TAIEX gains ground as foreign investors focus on electronics

Local share prices closed 0.62 percent higher yesterday in modest trade as foreign investors continued to buy into the market, particularly in the electronics sector, dealers said.

The world's leading contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), was in focus as it posted gains after going ex-dividend, with investors hopeful about its prospects for the second half of this year after it raised its guidance for the second quarter.

The TAIEX closed up 38.70 points at 6,231.05, off a low of 6,167.78 and a high of 6,236.15, on turnover of NT$76.31 billion (US$2.43 billion).

Risers led decliners 457 to 388, with 152 stocks unchanged.

A total of 18 stocks closed limit-up and eight limit-down.

The construction sector was up 0.89 percent, plastics/petrochemicals rose 0.78 percent, electronics 0.68 percent, financials 0.67 percent and textiles put on 0.53 percent.

"Foreign investors kept up their buying spree, prompting their domestic counterparts to follow suit," said Oliver Fang at Yuanta Core Pacific Securities (元大京華證券).

The fact that the market has managed to extend its uptrend beyond the 6,200-points level must be forcing skeptics and short sellers to readjust their stance, he said.

TSMC was up NT$1.60 at NT$54.50 after going ex-dividend for a cash payout of NT$1.9998 per share plus a 4.9997 percent stock dividend.

Rival United Microelectronics Corp (聯電) was up NT$0.10 at NT$23.50. Its shareholders approved a cash dividend of NT$0.10 per share plus a 10 percent stock dividend.