TAIEX high as NT dollar gains on US counterpart

Shares closed 1.69 percent higher yesterday as fund managers boosted their holdings ahead of the end of the current quarter, dealers said.

Wall Street's overnight gains gave the market an initial prod but ample liquidity injected further momentum, keeping the index in positive territory throughout the session, they said.

The TAIEX closed up 156.18 points at the day's high of 9,413.65, which also marked the highest level since 9,566.42 recorded on July 26. Turnover was NT$183.29 billion (US$5.55 billion).

Risers led decliners 1,275 to 583, with 207 stocks unchanged.

On the foreign exchange market, the New Taiwan dollar strengthened against its US counterpart, because of foreign capital inflows and to exporters selling US dollars ahead of the end of the month, dealers said.

The NT dollar rose NT$0.102 to NT$32.825, the highest close since July 3.

Turnover was US$1.271 billion on the Taipei Forex Inc.

Tank Hung, manager at Mega International Investment Services (兆豐國際投顧), said sentiment was upbeat after equities gained in New York overnight, encouraging fund managers in Taipei to continue buying shares.

"The upswing in the local unit reflected capital inflow," he said. He also said that inflow had injected momentum into several different market sectors.

High Tech Computer Corp (宏達電子) closed up NT$9.50 at NT$473.50 and MediaTek Inc (聯發科技) rose NT$8.00 to NT$588.00 over a report that the two companies are likely to tie up.

Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) soared NT$2.10 to NT$63.60 on a Reuters' report that Sony Corp has started buying TV chips from TSMC and aims to buy cellphone chips from the world's largest contract chipmaker.