Overnight gains on Wall Street bolster local stock market

Share prices closed 0.45 percent higher yesterday as sentiment was bolstered by Wall Street's extended gains overnight, dealers said.

The market gained further momentum as local firms reported better-than-expected sales and earnings for the first quarter to last month, they said.

The weighted index closed up 36.06 points at 8,084.45. Trading was between 8,055.67 and 8,105.82, while turnover totaled NT$114.01 billion (US$3.45 billion).

Yuanta Core Pacific Capital Management Co (元大京華投顧) assistant vice president Jack Tam said positive domestic and overseas leads supported the day's trade.

"Riding on the New York lead, investors were willing to beef up their portfolios with stocks that have solid fundamentals," he said.

However, Tam said that some profit-taking put a lid on the market's upside as investors wait for corporate guidance.

"Many companies are due to hold their quarterly briefing for investors soon, keeping some investors at bay before corporate guidance is unveiled," he said.

Shin Kong Financial Holding Co (新光金控) closed up NT$0.50 at NT$31.30 as investors responded to the company's concrete earnings results in the first quarter, with net profit at NT$7.03 billion.

Taiwan Semiconductor Manu-facturing Co (台積電) shares rose NT$0.80 to NT$69.30.

United Microelectronics Corp (聯電) was steady at NT$19.50.

High Tech Computer Corp (宏達電) fell NT$1.00 to NT$521.00 after it spent US$2.2 million through a wholly owned unit overseas on setting up a repair center for printed circuit boards (PCBs) in Shanghai.