Share prices closed 1.04 percent higher yesterday after an expected interest rate hike and as technology stocks forged ahead further in line with sustained gains on NASDAQ, dealers said.
Foreign investors were back in evidence, looking at large-cap stocks, particularly heavyweight semiconductor shares, they said.
The TAIEX rose 67.91 points at 6,613.97, on turnover of NT$110.42 billion (US$3.40 billion).
For the week, the index closed up 237.35 points or 3.72 percent, after a 2.33 percent decline a week earlier.
The average daily turnover stood at NT$86.82 billion, following an average of NT$86.18 billion a week ago.
SinoPac Securities (
"There are expectations here that technology firms, particularly semiconductor companies, will manage a second quarter better than the seasonal pattern."
Anticipation of month-on-month growth in corporate March sales also boosted sentiment, he said.
"Liquidity returned to the stock market; investors seemed to be more optimistic [about the bourse] now," he added.
Taiwan Semiconductor Manu-facturing Co (TSMC,
Share prices are expected to extend their gains next week on foreign interest in high-tech stocks, led by market heavyweight TSMC, dealers said.
Investors remained optimistic about the semiconductor sector, and interest in integrated circuit packaging and testing stocks was likely to continue, while flat panel display makers are expected to benefit from bargain hunting after recent heavy losses, the dealers said.
Cellphone manufacturers and steel makers may attract additional market attention on their positive fundamentals.
Dealers said foreign investors are expected to focus highly weighted stocks like TSMC.
"Riding the latest rebound, TSMC has jumped over its technical hurdle at around NT$62-NT$63. A stable TSMC will no doubt help the broader market," a dealer with another local brokerage said.
The market is expected to move between 6,500 points and 6,800 points next week.
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