Sat, Jun 14, 2008 - Page 11 News List

Wall Street boosts TAIEX, but inflation concerns cap rise

AFP , TAIPEI

Share prices closed up 0.54 percent yesterday after a positive Wall Street performance overnight but gains were capped amid inflation concerns, dealers said.

The weighted index closed up 43.28 points at 8,105.59, off a low of 8,042.89 and off a high of 8,161.64, on turnover of NT$101.34 billion (US$3.32 billion).

Gainers outnumbered decliners 1,344 to 925 with 409 unchanged.

The financial sector was up 1.70 percent and electronics up 0.27 percent.

Transport was down 2.85 percent and tourism was 0.10 percent lower.

“Today’s gains were just a technical rebound. Inflation concerns on high crude international prices remained,” President Securities Co (統一證券) analyst Johnny Lee said.

“Market confidence remains fragile. Once Wall Street tumbles again, the local bourse will suffer accordingly,” Lee said, adding it remains unclear how bad a state the US economy is in.

As the TAIEX rose yesterday profit taking pressure surfaced to limit the upside, keeping the market in a narrow range, Lee said.

“Taiwan shares are not likely to rise strongly in the near term, as investors are still cautious and prefer to make quick bucks,” Daiwa Securities Co (大和證券) analyst David Li told Dow Jones Newswires.

For the week to yesterday, the TAIEX closed down 639.76 points or 7.32 percent at 8,105.59 after climbing 1.47 percent a week earlier.

Average daily turnover stood at NT$106.50 billion, compared with NT$97.57 billion a week ago.

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