Wed, Aug 23, 2006 - Page 11 News List

Food, technology outperform as TAIEX rebounds

AFP , TAIPEI

Share prices closed 1.30 percent higher yesterday on a technical rebound following a major pullback, dealers said.

Turnover was light, indicating a reluctance to chase prices much higher owing to worries stirred by new opposition attempts to remove President Chen Shui-bian (陳水扁) from office, they said.

The weighted index closed up by 84.28 points at the day's high of 6,590.20, on a turnover of NT$63.04 billion (US$1.92 billion).

Food and technology outperformed, driven by technical factors, while liquid-crystal-display (LCD) panel manufacturers and makers of dynamic random access memory (DRAM) chips benefited from stabilizing product prices.

"A technical rebound gave a lift to the local bourse. Short-covering also contributed to the [recovery]," said Jack Tam, an assistant vice president at Yuanta Core Pacific Capital Management Co (元大京華投顧).

Bargain-hunting has also emerged, after a selloff in the previous session, dealers said.

"Some were willing to hunt for bargains today after yesterday's slump," Tam said, noting that companies with bright earnings prospects in the current quarter have attracted special interest.

But the upside was limited as lingering political worries kept investors from any immediate aggressive position-building, a situation expected to continue, Tam said.

Chi Mei Optoelectronics Corp (奇美電子) rose by NT$1.70 to NT$39.25 and Quanta Display Corp (廣輝電子) gained NT$0.50 to NT$13.75 on stabilizing panel prices.

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