Shares closed up 1.36 percent yesterday as gains in old-economy stocks offset concerns over Wall Street's lackluster showing, the weak US dollar and surging oil prices, dealers said.
The TAIEX closed up 122.25 points at 9,105.28, the highest closing level since the 9,182.60 posted on Aug. 9. Turnover was NT$137.74 billion (US$4.19 billion).
Risers led decliners 1,326 to 494, with 218 stocks unchanged.
Product price hikes spurred old-economy stocks such as cement and petrochemical shares. The central bank's rate hike of 12.50 basis points had only a muted impact as the move was in line with market expectations.
Alex Huang (
"Old-economy stocks outperformed on the back of a buying spree sparked by the upswing in [the price of] products such as cement and others," he said.
Huang said foreign investors were net buyers of local stocks over the past two sessions, encouraging investors to follow suit.
Pre-holiday caution ahead of the Mid-Autumn Festival next week had been priced in previously, with fund managers lending support to their holdings before they close their books for the quarter, he said.
While the central bank's rate hike did not affect the equity market directly, it can help limit capital outflows by domestic investors, Huang said.
Looking ahead, developments on major overseas markets will serve as a bellwether for Taipei stocks when the local bourse resumes trading on Sept. 26 after the holidays on Monday and Tuesday, he said.
RSS