Share prices rose to a new 13-month high yesterday, with technology-related stocks leading the gains.
The TAIEX climbed 11.15 points, or 0.2 percent, to 6,293.56 -- its highest closing since 6,402.21 on April 29 last year.
Turnover expanded to NT$111 billion (US$3.5 billion) as individual investors became more keen on local stocks, said Capital Securities (群益證券) trader Diana Wu.
Electronics shares, which gained 0.3 percent as a whole, accounted for 76 percent of the daily turnover.
Chipmaker United Microelectronics Corp (UMC, 聯電) rose 2.6 percent to NT$23.85, while the industry's global No. 1 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose 1.6 percent to NT$56.80.
UMC outperformed TSMC, partly because investors expect the government's investigation into UMC's alleged illegal ties with China's He Jian Technology (Suzhou) Co(和艦科技) to be closed soon. But an expected turnaround for the technology sector in the second half has pushed TSMC shares up.
Memory-chip maker ProMOS Technologies Inc (茂德) shares rose 5.6 percent to NT$12.50 on the over-the-counter exchange.
Component makers for thin-film-transistor liquid-crystal displays slid due to worries about weak shipments this month, Wu said.
Novatek Microelectronics Corp (聯詠科技), a chip designer for LCD drivers, fell by its daily limit of 7 percent to NT$133.50. Steel outperformed all other subindexes, closing 0.5 percent higher.
China Steel Corp (中鋼) rose 0.5 percent to NT$31.85 over its high dividend payout of NT$4.4 per share combining both stocks and cash, which is attractive to long-term investors, Wu said.
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