Share prices closed 0.71 percent higher yesterday, extending Friday's rebound, with sentiment supported by Wall Street's closing gains last week, dealers said.
The bellwether technology sector attracted some bargain-hunting after lagging behind traditional industrial and financial stocks in the previous session, they said.
The weighted index rose 45.23 points at 6,421.85, after trading between 6,399.08 and 6,430.23, on turnover of NT$65.01 billion (US$1.99 billion).
"We had a somewhat more significant rebound today, thanks to select technology bellwethers catching up," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president who serves mainly foreign investors.
The electronic sector added 0.98 percent.
The rebound was not unexpected for high-yielding, high-priced stocks like High Tech Computer Corp (宏達電), which lost 15 percent recently, he said.
Whether it would continue in the near-term remained uncertain ahead of the settlement of March futures contracts.
The market may also not get enough foreign investor support for the rest of the week, he said.
"As of last week, foreign investors had sold over NT$40 billion net of Taiwan equities this month," Fang said. "I see little reason for putting the brakes on the selling spree over the remainder of the month given the lack of catalysts for the bulls."
Taiwan Semiconductor Manu-facturing Co (
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