Shares closed 0.78 percent higher yesterday as Wall Street's overnight rally helped the market extend Thursday's technical rebound following a correction earlier in the week, dealers said.
Sentiment was also supported by foreign investors' net purchases a day earlier after their sell-off in the previous three days. The TAIEX closed up 58.41 points at 7,538.82. Turnover was NT$106.20 billion (US$3.26 billion). Risers led decliners 778 to 398, with 204 stocks unchanged.
Fubon Securities (
"Foreign investors apparently continued to buy into the local bourse today, encouraging local ones to follow suit," Lin said.
He said liquidity-driven interest lent support to the broad market as well. Companies with a presence in the China market and asset-backed firms attracted rotational buying.
"Year-end window-dressing activities and companies' prospects next year will be the main factors affecting the stock market next week," Lin noted.
For the week to yesterday, the weighted index closed down 97.48 points or 1.28 percent, following a 0.30 percent rise a week earlier. Average daily turnover stood at NT$108.43 billion, compared with NT$120.80 billion last week.
Although this week's selling was largely initiated by foreign investors, there is little sign that they have moved funds out of the local market, said Calvin Chen, an analyst with Yuanta Core Pacific Capital Management (
"Taiwan is still a liquidity driven market. Ample funds are strong support for share prices," Chen said.
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