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TAIEX stocks up 0.39% on stronger Wall Street shares

Taiwan share prices closed 0.39 percent higher yesterday, as investors were encouraged by Wall Street's strong showing overnight on news that Merrill Lynch will receive up to US$6.2 billion from two investment groups, dealers said.

However, trade was a bit erratic with the index slipping into negative territory for a while midmorning before recovering on expectations of support from government-related funds, they said.

The TAIEX closed up 31.59 points at 8,167.07, off a low of 8,119.85 and high of 8,181.61.

Turnover was at NT$74.78 billion US$2.3 billion. Risers led decliners 1,036 to 855, while 510 stocks were unchanged.

A total of 40 stocks closed limit-up, while 47 were limit-down.

The New Taiwan dollar ended the day's session at NT$32.499 to the US dollar, declining NT$0.001 from the previous close.

Frank Lin , senior vice president at Fubon Securities Co (富邦證券), attributed the market's firmer close to the lead from Wall Street and hopes for support from government-linked funds.

"The local bourse extended its technical rebound following previous slumps, with the New York lead and government support hopes serving as positive drivers," he said.

However, light volumes reflect lingering political concerns ahead of parliamentary elections in January and presidential polls in March, he said.

Lin also said that many traders, particularly from foreign institutions, were on year-end holidays.

The market's gains in the last few sessions should be considered a technical recovery following earlier volatility, rather than as any indicator for prospects moving forward, he said.
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