Fri, Nov 03, 2006 - Page 11 News List

Investors shrug off Wall Street drop, shares move up

AFP AND BLOOMBERG , TAIPEI

Shares closed 0.91 percent higher yesterday largely on the back of a liquidity-driven upswing, as investors opted to shrug off Wall Street's overnight downturn, dealers said.

Bargain-hunting emerged midmorning on signs that the benchmark index did not appear likely to fall below the 7,000 points in the immediate term, they said.

The TAIEX closed up 64.11 points at 7,078.10, on a turnover of NT$81.33 billion (US$2.46 billion).

Risers led decliners 573 to 506, with 205 stocks unchanged.

"We seem to be benefiting from a laggard upswing, driven by a resumed influx of capital to this part of the world," said SinoPac Securities (永豐金證券) assistant vice president Alvin Teng (鄧可欣).

"Oil dollars" in search of more attractive investment targets following the drastic pullback in oil prices, will play a critical part in this process, with Hong Kong- and particularly China-related stocks the greatest beneficiaries, he said.

"Taiwan remains a laggard as it still has problems of its own, including an ongoing probe into alleged irregularities in the financial services sector and caution ahead of local elections next month," he said.

On the local foreign exchange market, the New Taiwan dollar closed at its highest in a month against the US dollar, on speculation investors will buy equities as tensions in the region lessen.

The NT rose by NT$0.122 to close at NT$33.045, the strongest since Sept. 28, according to the Taipei Forex Inc. Turnover was US$1.001 billion.

Foreign investors bought US$186.3 million more Taiwan shares than they sold from Oct. 31 to yesterday, according to stock exchange data.

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