Sat, May 03, 2008 - Page 11 News List

TAIEX tracks Wall Street gains, closes 0.49 percent higher


Share prices closed 0.49 percent higher yesterday, tracking Wall Street’s gains overnight after better-than-expected US economic data and a cut in US borrowing costs, dealers said.

The weighted index closed up 43.71 points at 8,963.63, after trading in a range between 8,950.28 and 9,010.71 on turnover of NT$177.76 billion (US$5.8 billion).

Risers led decliners 1,268 to 1,085, with 303 stocks unchanged. A total of 34 stocks closed limit-up, while 30 were limit-down.

Samson Chueh (闕山雄), an assistant vice president at Yuanta Core Pacific Capital Management Co (元大投顧), said the Wall Street rally convinced investors to stay positive on the Taiwanese market following a bout of consolidation.

“[President-elect] Ma Ying-jeou’s (馬英九) reassurance on closer cross-strait ties also helped ease concerns,” he said.

After the earnings season, investors will look for foreign leads before tax concerns steal the spotlight, he said.

For the week, the weighted index closed up 15.8 points, or 0.18 percent, after a 1.39 percent fall a week earlier. Average daily turnover stood at NT$154.9 billion, compared with NT$156.9 billion a week ago.

Despite narrow trading, interest in the lagging financial sector was expected to support the market, with the weighted index likely to move between 8,800 points and 9,200 points next week.

“The market is very likely to encounter heavy pressure at around 9,000 points. But the financial sector may serve as a safe haven for now,” said a dealer with another local brokerage who asked not to be named.

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