Share prices closed 2.01 percent higher yesterday, rebounding sharply from heavy losses on Monday sparked by disappointment at President Chen Shui-bian's (
They said the market had opened tentatively on concerns that Chen's remarks might add to tensions with Beijing but signs that foreign investors continued to buy into Taipei, a laggard market last year, steadied sentiment.
The TAIEX rose 129.71 points to the day's high of 6,591.77, on turnover of NT$153.45 billion (US$4.7 billion). It earlier hit a low of 6,457.09.
Risers led decliners 894 to 198, with 124 stocks unchanged.
The electronics sector rose 2.50 percent with financials up 1.64 percent.
President Securities (
Lee said investors were positive on the outlook for tech stocks, but cautioned that while the rally may be sustained by fresh fund inflows, profit-taking could emerge after yesterday's advance.
Shares in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) closed NT$1.90 higher at NT$62.90 after the company stood by its fourth quarter guidance despite some production delays.
TSMC's main rival United Microelectronics Corp (