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Lifting of chipmaker curbs gives TAIEX a new year's boost

Shares closed 1.24 percent higher at a six-year high yesterday as liquidity-driven buying helped the market get off to a good start in the new year amid increased turnover, dealers said.

Expectations of an improvement in cross-strait ties and a lifting of curbs on transfer of 0.18-micron process technology to China by Taiwanese chipmakers provided the catalysts for the buying interest, they said.

The New Taiwan dollar also climbed higher against its US counterpart on the first trading day following New Year's Day, supported by the rising Asian currencies and strengthening Taiwanese stocks.

The TAIEX closed up 97.08 points at 7,920.80, its highest close since Aug. 25, 2000.

Turnover was NT$140.933 billion (US$4.35 billion), with risers leading decliners 803 to 428, and 135 stocks unchanged.

On the Taipei foreign exchange market, the NT dollar rose NT$0.193 to finish at NT$32.403 against the greenback, on turn-over of US$955 million.

Institutional investors were all seen active throughout the session to help push shares higher. Together, they purchased a net total of NT$10.457 billion worth of stocks, according to Taiwan Stock Exchange Corp's statistics.

Frank Lin, senior vice president at Fubon Securities, said expectations of fresh capital inflows provided momentum.

"Investors were pinning hopes on foreign capital inflows as a prospective yuan appreciation may move regional currencies firmer," he said.

President Chen Shui-bian's (陳水扁) New Year's address did not dispel hopes for improved economic ties between Taipei and Beijing because it did not have any surprises, he said.

Taiwan Semiconductor Manu-facturing Co closed up 0.3 percent at NT$67.70 after it was given the go-ahead to transfer 0.18-micron semiconductor process technology to China.
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