Tue, Jul 21, 2009 - Page 12 News List

Taipei shares close 1.28 percent higher


Local share prices closed up 1.28 percent yesterday as buying was encouraged by better than expected US corporate earnings, dealers said.

The weighted index rose 87.87 points to 6,938.86 on turnover of NT$143.68 billion (US$4.38 billion).

The market opened up 1.03 percent after Wall Street posted gains for five trading sessions in a row, and continued to steam ahead on expectations that the global economy is on the way to recovery.

“Higher than expected US banking quarterly results made investors happy. There have been high hopes that more US enterprises will deliver good news during the earnings season,” Concord Securities (康和證券) analyst Allen Lin said.

“Many investors expect the local bourse will follow Wall Street’s lead to go even higher, reflecting better economic fundamentals,” Lin said.

Institutional investors kept picking up select bellwether electronic stocks amid optimism over the global demand picture, dealers said.

“The market is hoping major high tech firms will report improving quarterly results and give positive guidance later this month,” Lin said.

The financial sector rebounded on hopes that Taiwan and China will soon sign a memorandum of understanding.

However, Lin said as the index is moving closer to the key resistance level of 7,000 points, volatility is likely to dominate market movements.

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