Tue, Jan 16, 2007 - Page 11 News List

Bellwether stocks lead share gains on the local bourse

AFP , TAIPEI

Taiwan's share prices closed 0.28 percent higher yesterday on the back of Wall Street's strong finish on Friday dealers said.

Bellwether technology stocks led the advance on expectations of further support from government-linked funds, they said.

The gains offset lingering concerns over the financial crisis at the Rebar conglomerate.

The weighted index added 21.79 points at 7,783.50, off a high of 7,814.85 and a low of 7,741.49, on turnover of NT$116.53 billion (US$3.56 billion).

"Besides [investors'] hopes for government support for the market to cope with the impact of Rebar's woes, the broad market also benefited from the strong prospects of selected technology firms," said Tom Tang, president of Kai Yuan Securities Investment Consultant Co (開元投顧).

Taking advantage of an early rally inspired by Wall Street's record close on Friday, some investors locked in profits as worries over Rebar lingered, but dealers said that anticipation of liquidity-driven buying emerged, curbing pressure from profit-takers and indicating the market may be headed for some consolidation.

"The local bourse appears poised for further rangebound consolidation, with [the current] ample liquidity pointing to further rotational plays," Tang said.

Taiwan Semiconductor Manufacturing Co (台積電) closed up NT$0.10 at NT$69.20 and United Microelectronics Corp (聯電) gained NT$0.15 to NT$20.25 following gains in their respective American Depository Shares.

High Tech Computer Corp (宏達電) advanced NT$8 to NT$525 following data that it bought back 1.05 million shares from Wednesday to Friday.

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