Stocks close up as confidence returns

Share prices closed 1.27 percent higher yesterday on continued window-dressing ahead of the end of the year, with sentiment also buoyed by expectations that the government will relax its policy on China-bound investment limits, dealers said.

The dealers said the market was expecting further interest from foreign investors, while those who were betting that stocks would fall were forced to adjust positions and buy in order not to get behind the curve in a rising market.

The weighted index was up 80.73 points at 6,431.42, its highest level since 6,446.01 on Aug. 4, on turnover of NT$115.20 billion (US$3.48 billion).

"Foreign investors looked to be on the buy side and there were expectations of foreign capital inflows," said Frank Lin, senior vice president with Fubon Securities Corp (富邦證券).

"Taipei stocks had been oversold and were lagging behind other [major markets]," he said.

Non-electronics large caps also attracted interest on hopes for an easing of policy toward China, Lin added.

Taiwan Semiconductor Manufacturing Co (台積電) closed up NT$0.50 at NT$62.50 and United Microelectronics Corp (聯電) rose NT$0.35 at NT$18.70.

Acer Inc jumped NT$5.20 to NT$85.40 on next year's notebook computer sales target of 11 million units.