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Taiex closes 0.39% higher on Wall Street lead

Taiex closes 0.39% higher on Wall Street lead

Taiwan share prices closed 0.39 percent higher yesterday, as investors were encouraged by Wall Street's strong showing overnight on news that Merrill Lynch will receive up to US$6.2 billion from two investment groups, dealers said.
However, trade was a bit erratic with the index slipping into negative territory for a while midmorning before recovering on expectations of support from government-related funds, they said.
The weighted index closed up 31.59 points at 8,167.07, off a low of 8,119.85 and high of 8,181.61. Turnover was at NT$74.78 billion (US$2.3 billion).
Risers led decliners 1,036 to 855, while 510 stocks were unchanged.
A total of 40 stocks closed limit-up, while 47 were limit-down.
The food sector was up 3.87 percent, cement sector advanced 2.48 percent and electronics rose 0.44 percent.
The petrochemicals sector was down 0.34 percent and financials dropped 0.02 percent.
The Taiwan dollar ended the morning session at 32.510 to the US dollar, compared with the previous close of 32.498.
Frank Lin, senior vice president at Fubon Securities Co, attributed the market's firmer close to Wall Street's lead and hopes for support from government-linked funds.
"The local bourse extended its technical rebound following previous slumps, with the New York lead and government support hopes serving as positive drivers," he said.
However, light volumes reflect lingering political concerns ahead of parliamentary elections in January and presidential polls in March, he said.
Lin also noted that many traders, particularly from foreign institutions, were on year-end holidays.
The market's gains in the last few sessions should be considered a technical recovery following earlier volatility, rather than as any indicator for the prospects going forward, he added.
Uni-President Enterprises closed up NT$1.35 at NT$39.90 on news that its unit President International Development owns 0.30 percent of Synnex Technology International Corp after recent transactions. Synnex was limit-up NT$5.20 to NT$79.70.
Cathay Financial Holdings rose NT$0.10 to NT$66.20 after denying a media report that it is planning a merger with financially troubled Chinfon Bank.
Taiwan Semiconductor Manufacturing Co. was up NT$0.40 at NT$59.60 amid the company's ongoing share buyback program, while United Microelectronics lost NT$0.35 to NT$19.55.


Updated : 2020-12-01 11:17 GMT+08:00