Taipei shares close higher on currency strength, hopes of fund inflow

Taipei shares close higher on currency strength, hopes of fund inflow - UPDATE

	Published : Fri, 26 Oct 2007 07:13 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - Share prices closed higher as expectations that the Taiwan dollar's strength will sustain the inflow of capital into the local bourse provided a further boost to the market after yesterday's rise.

Select industrial heavyweights attracted follow-through interest, while technology shares were supported by Microsoft's rally in after-hours New York trade despite a weaker Nasdaq overnight.

The weighted index closed up 63.25 points or 0.66 pct at 9,631.51, after moving in a range between 9,573.00 and 9,661.94.

Turnover was at 139.41 bln twd.

For the week, the index gained a cumulative 19.79 points, or 0.21 pct.

The index moved higher even as decliners outnumbered advancers 1,002 to 982, with 279 stocks unchanged.

A total of 13 stocks closed limit-up and nine limit-down.

The heavily weighted financial and electronics sectors were down 0.78 pct and 0.55 pct, respectively.

The cement sector was up 3.64 pct, paper up 1.55 pct, plastics/petrochemicals up 0.65 pct and construction up 0.62 pct.

The food sector was down 0.72 pct and textile down 0.33 pct.

The Taiwan dollar closed the morning at 32.407/dollar, compared with the previous close of 32.499.

'The firmer Taiwan dollar is definitely a clear indicator of foreign interest picking up,' Yuanta Core Pacific Securities assistant vice president Oliver Fang said.

'We are not the only beneficiary of this ongoing spate of currency appreciation (in the region) led by the yuan,' he said, adding that the local market has lagged its Asian peers and may continue to attract bargain-hunters.

'The Taipei bourse remains a laggard to Hong Kong and Seoul,' he said.

Both markets traded higher this morning.

Due to an anticipated pickup in laggard interest, Taipei stocks have a good chance of sustaining its upward momentum in the short run and test the year's high of 9,807 points attained in late July, Fang said.

TSMC closed up 0.50 twd at 61.60, underpinned by its positive guidance for the fourth quarter to December and for 2008. Although TSMC reported weaker-than-expected earnings for the third quarter, its American depositary receipts gained overnight, despite a sharp drop on the Philadelphia Semiconductor Index.

UMC rose 0.45 twd or 2.19 pct to 21.00.

Acer was 0.80 higher at 73.20 after reporting improved third-quarter and nine-month results.

Powerchip was up 0.55 twd or 3.72 pct at 15.35 on bargain-hunting as investors took positions for an expected recovery in DRAM prices in the first quarter of 2008.

Taiwan Cement gained 2.30 twd or 4.22 pct to 56.80 on the company's expectation of a solid core business and high returns from its investment portfolio in 2008.

Asia Cement was up 2.00 twd or 3.88 pct at 53.50.

Cathay Financial was up 0.30 at 80.50 and Shin Kong Financial was 0.35 higher at 28.95.

Chinatrust Financial was down 0.25 at 23.70. The company said its wholly owned unit, Chinatrust Commercial Bank, will not consider offering cash cards again until market conditions have improved.

(1 usd = 32.40 twd)

philip.wang@afxasia.com

pw/net

xfnpw/xfnnt

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

Taipei shares close higher on currency strength, hopes of fund inflow - UPDATE