Shares closed 0.98 percent higher yesterday as position-building gained momentum in late morning trade, reversing a brief pullback due to profit-taking earlier in the session, dealers said.
The shift from profit-taking to bargain-hunting among technology bellwethers reflected demand from investors who missed out on the recent share run-up which pushed the benchmark above 9,500 points, they said.
The TAIEX closed up 92.41 points at 9,509.73, on turnover of NT$197.02 billion (US$6.01 billion).
Risers led decliners by 988 to 437, with 152 stocks unchanged.
Taiwan Cement Corp (
The index's target was raised to 12,000 from 10,000, Ken Chen (陳安), head of Taiwan research at UBS, wrote in a note dated Monday, citing improving corporate earnings and a shift by investors away from bonds and property toward stocks as interest rates rise.
"The UBS report is a confidence booster," said Phil Chen (陳憲志), who manages US$154 million at Grand Cathay Securities Investment Trust Co (大華投信).
Foreign investors bought a net amount of NT$1.52 billion worth of shares yesterday.
Overseas investors have purchased NT$80.16 billion net since the beginning of this month, Taiwan Stock Exchange data showed.
additional reporting by staff writer
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