Alexa

Taiwan shares close up 0.72 percent

Taiwan shares close up 0.72 percent

Taipei, May 28 (CNA) Taiwan shares closed up 0.72 percent Friday on buying triggered by a strong overnight rebound on Wall Street that pushed the Dow Jones Industrial Average over the key 10,000 point level again, dealers said later that day.
The weighted index closed up 52.16 points at 7,295.32, after moving between 7,271.30 and 7,364.01, on turnover of NT$101.71 billion (US$3.17 billion).
The market opened up 1.32 percent as investors took their cues from the Wall Street gains, but profit-taking emerged during the trading session that compromised the earlier gains, with the index approaching the nearest technical resistance at around 7,400 points, the dealers said.
The textile sector posted the strongest gains, up 2.18 percent, followed by plastics and chemicals at 0.90 percent, the paper and pulp sector, up 0.79 percent, the construction sector, which increased 0.75 percent, and the cement sector, which saw a 0.73 percent rise.
The electronics sector closed up 0.72 percent, the financial sector rose 0.41 percent and the foodstuff sector was up 0.3 percent.
Among the textile stocks, Tainan Spinning rose 3.60 percent to NT$12.95 and Chuwa Wool Industry gained 2.15 percent to close at NT$33.30.
AU Optronics closed up 1.98 percent at NT$30.95 after announcing that it will join forces with SunPower of the United States to set up a US$700 million solar cell plant in Malaysia.
Taiwan Semiconductor Manufacturing Co. closed unchanged at NT$58.70, while rival United Microelectronics Corp. added 1.77 percent to end the trading session at NT$14.34.
Friday marked the market's third consecutive day of gains after a 3.23 percent dive May 25 to an eight-month low.
"Investor sentiment has improved since the recovery in the last three sessions. It seems that the market has managed to regain some stability after the recent heavy losses, " said TLG Asset Management analyst Arch Shih.
"The profit-taking seen during the trading session was just a technical reaction and a trend toward further rebounds remains in place," Shih said.
He said many investors have felt relieved since witnessing the U.S. economy grow 3 percent in the first quarter of this year, and added that the global economy is still moving ahead, although at a slow pace.
Investors also hailed a rebuttal by China's State Administration of Foreign Exchange of reports that it was reconsidering its holdings in European bonds, dealers said.
The market is expected to challenge the 7,500 point level next week starting from Tuesday, as investors have embraced high hopes about the high-tech sector's May sales reports, said Shih.
(By Frances Huang)