Shares rose to a fresh 20-month high yesterday, with liquid-crystal-display (LCD) panel stocks popular with investors on expectations of strong demand for LCD television sets next year.
The TAIEX rose 51.13 points, or 0.8 percent, to 6,575.53. The turnover was NT$152.47 billion (US$4.62 billion).
Yesterday's closing number was the highest settlement level for the index since it finished at 6,646.80 on April 27 last year, and a new 20-month high after Monday's close of 6,534.77.
"Companies such as LCD and mobile phone makers that are expected to report solid revenue growth, given an upbeat first-quarter outlook, were especially favored," said Stanley Chou, a manager at Barits Investment Service (倍利投顧).
Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest LCD panel maker by revenue, rose 6.4 percent to NT$46.8, and larger rival AU Optronics Corp (友達光電) added 1.5 percent to NT$48.4.
President Securities (統一證券) analyst Johnny Lee said there may be further gains in LCD stocks in the near term on hopes that strong demand for LCD television sets during the Christmas holidays will continue into the first quarter of next year.
This would be expected to boost earnings growth for Taiwanese panel makers.
STRONGEST LEVEL
Meanwhile, the New Taiwan dollar rose to its strongest level in three months against the US currency after global investors bought a record amount of the nation's stocks.
"Foreigners have bought a lot of Taiwan's stocks, making it the biggest factor strengthening the currency," said Lo Chung, who works as a currency trader with Shin Kong Commercial Bank (
"The gains will probably continue," he said.
The local currency climbed NT$0.199 to close at NT$32.908 against the US currency, its largest advance since Sept. 2 and the strongest close since Sept. 15, according to Taipei Forex Inc.
``Demand from foreigners and exporters together boosted the Taiwan dollar today,'' Lo said.
The currency also rose on speculation that some exporters were converting overseas earnings into local currency before a month-end bookkeeping deadline, Lo said.
The NT dollar's decline of as much as 0.1 percent earlier yesterday may raise earnings from abroad for companies such as Taiwan Semiconductor Manufacturing Co (台積電).
Turnover was US$1.039 billion, up from US$909 million the previous day.
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