Fri, Jul 09, 2010 - Page 11 News List

Taiwan bourse rises above 7,600 points on Wall Street rally

STAFF WRITER, WITH CNA

Taiwanese share prices closed 0.98 percent higher yesterday, breaking the 7,600-point mark as sentiment was lifted by Wall Street’s return to the 10,000-point level overnight, dealers said.

The TAIEX rose 74.39 points to 7,608.85, after moving to 7,583.36, on turnover of NT$120.87 billion (US$3.76 billion).

The market opened 1.04 percent higher, led by large-cap electronics on optimism over their earnings outlook after they reported robust sales last month. However, the gains were compromised to some extent by profit taking after the bourse breached the nearest technical resistance of 7,600 points, dealers said.

A total of 2,266 stocks closed higher and 954 lower, while 403 remained unchanged.

“The performance of Wall Street overnight was encouraging, prompting investors here to buy,” Mega International Investment Services (兆豐證券) analyst Alex Huang (黃國偉) said.

Huang said while US markets may encounter further volatility, many oversold stocks on Wall Street are expected to continue to attract buying.

“I expect that a stable Wall Street, at least for now, will lend strong support to the local bourse,” Huang said.

Huang said buying rotated to electronics heavyweights on renewed hopes that the high-tech sector will continue to enjoy strong global demand. Huang said the electronics sector accounted for an estimated 70 percent of yesterday’s total turnover.

“But such a development has drained funds from financial stocks; therefore, the sector underperformed on the broader market today,” Huang said, calling that sector “a good bargain.”

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