Share prices closed 0.23 percent higher yesterday, led by makers of thin-film-transistor liquid crystal display panels, which attracted interest on expectations of an imminent bottoming out of the industry, dealers said.
They said Wall Street's modest losses on Friday were largely ignored but investors were largely on hold ahead of the US Federal Reserve's two-day policy board meeting which ends tomorrow.
Most expect the Fed to leave rates on hold but will be want to hear what the US central bank has to say about the economic outlook after concerns about a weakening US housing market roiled the markets last week.
Another increase in Chinese interest rates had little impact, with Chinese markets rising sharply after a move that was broadly anticipated.
Construction stocks were boosted by a report that Richard Li (李澤楷), chairman of Hong Kong's PCCW Ltd (電訊盈科), made a fact-finding tour of central Taiwan's property market over the weekend, but the gains were trimmed by profit-taking in late trade.
The weighted index closed up 17.66 points at 7,737.46, off a low of 7,713.78 and a high of 7,759.66, on turnover of NT$94.49 billion (US$2.85 billion).
"Shares largely traded sideways as investors awaited more definitive signs from the international markets, particularly on the [US] Fed's rate decision this week," Mega International Investment Services (
Caution was reflected by investor reluctance to push the construction sector much higher, giving way to profit-taking after initial gains fueled by Li's visit, he said.
"People refrained from chasing that lead blindly as the property market in [the area] has the most serious oversupply problem in the nation," Huang said.
Huang also noted gains on China's markets in the wake of the central bank's first interest rate hike since the middle of last year.
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