Taiwanese shares closed up 0.68 percent yesterday after bargain hunting in late trading reversed an early downside following a Wall Street plunge overnight, dealers said.
The weighted index rose 38.51 points to 5,742.23, off a low of 5,558.35 and a high of 5,747.73, on turnover of NT$67.12 billion (US$2.09 billion).
Gainers led losers by 998 to 617, with 382 stocks unchanged.
The market opened lower amid uncertainty over the fate of the massive US financial rescue package that went before lawmakers yesterday, but bargain hunters turned active later to pick battered market heavyweights, dealers said.
“I suspect the late trade buying partly came from government-controlled funds in an attempt to shore up market confidence,” Grand Cathay Securities (大華證券) analyst Mars Hsu said.
Apart from the presence of the government funds, a two-week ban on short-selling shares below their previous closing prices also helped stablize the market, dealers said.
For the week, the weighted index closed down 187.40 points, or 3.16 percent, after a 0.68 percent fall a week earlier. Average turnover stood at NT$66.51 billion, compared with NT$88.72 billion a week ago.
“The reduced trading volume showed weak market confidence as global financial woes continue to haunt investors here,” President Securities (統一證券) analyst Steven Huang said.
“Few can be sure whether the US rescue plan will effectively stem the difficulties in the banking system even if it gets approved. We are at a critical moment,” Huang said.
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