Sat, Oct 14, 2006 - Page 11 News List

Wall Street gains drive stocks higher on Taiwan's bourse

AFP , TAIPEI

Shares closed 1.21 percent higher yesterday as Wall Street chalked up another record finish overnight with investors banking on a soft landing for the US economy, dealers said.

They said an easing of local political tensions after the failure of a second legislative motion to force a referendum on the future of embattled President Chen Shui-bian (陳水扁) may also have helped sentiment.

The TAIEX rose 84.22 points to close at 7,068.80, after trading between 7,046.65 and 7,096.51, on turnover of NT$101.84 billion (US$3.07 billion). Risers outpaced decliners 817 to 291, with 156 stocks unchanged.

The construction subindex hit its highest level in more than six years, rising 1.9 percent to its best close since February 2000 on pent-up demand. The sector has risen 58 percent so far this year, traders said.

However, profit-taking might begin hitting construction shares soon, they added.

Dealers said the bellwether technology sector came under the spotlight again as investors took their lead from technology stocks listed on the NASDAQ and the Philadelphia Semiconductor Index.

Despite the gains, investors remained wary about the sustainability of the bull run in the US against the backdrop of a slowing economy, they said.

Taiwan Semiconductor Manu-facturing Co (台積電) closed up NT$2.20 at NT$63.20 and United Microelectronics Corp (聯電) rose NT$0.20 to NT$18.40.

Makers of flat panel displays gave up earlier gains on profit-taking, with AU Optronics Corp (友達) down NT$0.05 at NT$47 and Chi Mei Optoelectronics Corp (奇美) down NT$0.10 at NT$37.10.

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