Share prices closed 0.29 percent higher yesterday on the back of follow-through interest in bellwether technology stocks after NASDAQ's continued gains overnight, dealers said.
They said the market now appears poised to break out of the current trading range despite the onset of profit-taking after the benchmark index broke its recent high of 6,401 points in early business.
The TAIEX closed up 18.28 points at 6,377.09, on turnover of NT$106.13 billion (US$3.33 billion).
"A mounting note of caution was more than apparent as the market had advanced for three consecutive sessions," said Daniel Tseng (
More room for an advance looks likely in the near term, as foreign investors have apparently resumed their buying activity in the bellwether tech sector, he said.
"I will not be worried that much about the upcoming earnings reports of these heavyweights," he said.
"Even the flat-panel makers, which had been battered hard by oversupply, are set to echo LG.Philips LCD's forecast of stronger demand in the third quarter when they hold their investor conferences in the coming weeks," he said.
Shares of panel makers also rose after Taipei-based market researcher WitsView Technology Corp (聯景科技) forecast the prices of 15-inch, 17-inch, and 32-inch panels used in laptop computers and TV screens would rise by as much as US$5 this month.
AU Optronics Corp (
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