Shares advance to new seven-year high over property

Taiwan stocks rose yesterday to close at a new seven-year high, boosted by gains in property stocks.

The weighted index rose 56.28 points to the day's high of 8,939.49, off a low of 8,849.35 on turnover of NT$131.61 billion (US$4.01 billion).

Risers led decliners 727 to 554, with 184 stocks unchanged.

A total of 42 stocks closed limit-up. Nine were limit-down.

Alvin Teng (鄧可欣), an assistant vice president at SinoPac Securities Corp (永豐金證券), said liquidity-driven buying interest outweighed the negative lead from US markets, as well as some technical concerns locally.

"There were expectations of pressure around 9,000 points on the index [but] ... ample liquidity lent support ... evidenced by rotational interest," he said, noting the food and textile sectors in particular attracted laggard buying.

Property and construction firms gained ground on news that the Cabinet would discuss urban renewal plans.

The market was also supported by laggard interest in food and textiles, while financial stocks benefited from a report that Morgan Stanley was looking to buy a near 10 percent stake in Chinatrust Financial Holding.

"The government's plan on urban renewal projects boosted real estate stocks," Teng added.

Taiwan Semiconductor Manu-facturing Co (台積電) was down 0.10 at NT$70.80, while United Microelectronics Corp (聯電) finished steady at NT$19.85.

Chinatrust Financial Holding Co (中信金控) closed up 0.55 at 26.15 after the Chinese-language Economic Daily News reported that Morgan Stanley had sought regulatory approval to acquire nearly 10 percent of the firm.