Shares see small rebound in Wall Street's wake

Taiwan share prices closed 0.44 percent higher yesterday on the back of a technical rebound led by some large-caps following Wall Street's overnight gains, dealers said.

They said the recovery was, however, limited by caution ahead of earnings reports by select companies due out by the end of this month.

The weighted index closed up 26.89 points at 6,136.55 on turnover of NT$62.95 billion (US$1.95 billion).

Risers led decliners 521 to 359, with 154 stocks unchanged.

A total of 26 stocks closed limit-up, while 14 were limit-down.

The construction sector was up 2.07 percent, textile up 1.24 percent and electronics up 0.50 percent.

The auto sector was down 0.76 percent and cement down 0.19 percent.

"Wall Street's lead sparked a technical rebound, but fundamental concerns were anticipated to continue to affect the local bourse (going forward)," Michael Hsu (許派一), assistant vice president with Jih Sun Securities Investment Consulting Co (日盛投顧), said.

He said these fundamental concerns will include Taiwan's trade, corporate earnings growth prospects and currency movement.

"The broad market has been in consolidation in the range between 6,000 and 6,300 points ... it may face some pressure unless it successfully breaches the monthly moving average of 6,277 points or the quarterly moving average of 6,280," Hsu added.

Taiwan Semiconductor Manufacturing Co (台積電) rose NT$1.00 to NT$52.80 and United Microelectronic Corp (聯電) added NT$0.20 to NT$20.55.