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Taiex gets boost after advances by Hon Hai, Via

Taiex gets boost after advances by Hon Hai, Via

Taiwan share prices closed up 1.17 percent at a more than a six-year high yesterday on continued year-end window-dressing activity and a stronger Taiwan dollar following the central bank's decision Thursday to raise interest rates, dealers said.
They said the central bank's move has triggered expectations of a further influx of foreign capital into Taiwan.
"The rate hikes by the central bank boosted the Taiwan dollar and triggered a buying spree in the stock market," said Johnny Lee, manager at President Securities.
"Prospects of upswing in interest rates are drawing a rosy picture for the local currency and heightened hopes for more foreign capital inflows," he said.
Amid such hopes, investors extended their window-dressing activity into the last session of the year, he said.
"With regional currencies poised for further appreciation, more funds may move in (to Asia)... and liquidity needs to find exit" through instruments such as equities, Lee said.
The Taiex index climbed 90.79 to 7823.72 at the close in Taipei. About four stocks rose for every one that declined. Futures due in January added 1 percent to 7880. The Taiex gained 20 percent in 2006, rounding off its longest winning yearly streak since 1989.
Meanwhile, the launch of Microsoft's new operating system Vista should boost demand for electronic products such as notebook computers and benefit the entire supply chain.
The local bourse should also be supported next year due to hopes for improved ties between Taipei and Beijing in the run-up to Taiwan's legislative polls in late 2007 and the presidential election in early 2008, analysts said.
Hon Hai, which supplies iPod to Apple Computer Inc., climbed NT$1.50, or 0.7 percent, to NT$232.50. Hon Hai, Taiwan's biggest electronics company, has risen 55 percent this year. Quanta Computer Inc., which makes notebook computers for clients such as Dell Inc. and Hewlett-Packard Co., rose NT$0.80, or 1.4 percent, to NT$59.10.
Elsewhere, Benq Corp., Taiwan's largest mobile-phone handset maker, dropped 10 cents, or 0.6 percent, to NT$17.45. Benq's German mobile-phone unit faces liquidation as insolvency administrator Martin Prager hasn't found a new investor yet, Financial Times Deutschland said, citing Michael Leucker, head of the worker's council.
The insolvency administrator's plan to break up the company and sell individual units hasn't paid off so far, Leucker told the German newspaper.


Updated : 2021-05-13 09:19 GMT+08:00