TAIEX rises 0.7 percent ahead of futures expirations

Shares closed at their highest level in more than three months yesterday, buoyed by bullish sentiment ahead of the expiry of futures contracts, analysts said.

The TAIEX rose 46.34 points, or 0.7 percent, to 6,252.10.

Trade totaled NT$76.3 billion (US$2.42 billion), one of the lowest daily turnovers for the month, down from the previous session's NT$91.27 billion.

The main index will likely trade between 6,200 and 6,300 today, said Diana Wu, a Capital Securities Co (群益證券) analyst, adding that it could even test its highest level reached so far this year, the 6,267.52 mark touched on March 2.

Key futures contracts are scheduled to be settled today.

Whether the market can break the previous standard depends on the turnover, Wu said.

Among the most active stocks yesterday, Taiwan Semiconductor Manufacturing Co (台積電) rose 0.9 percent to NT$55.

Investors bought stock in the world's biggest contract chipmaker because they expect the chip industry to recover in the second half of the year, analysts said.

Smaller rival United Microelectronics Corp (聯電), however, lost 2.4 percent to NT$22.60.

The construction subindex rose 0.9 percent on the belief that shares in the sector remain undervalued given strong housing sales over the past year, analysts said. They said many construction businesses are expected to deliver strong earnings in the second half of the year.

Goldsun Development & Construction Co (國產) rose 1.9 percent to NT$8.7, although Cathay Real Estate Development Co (國泰建設) fell 0.3 percent to NT15.8.