Taiwan shares prices close up 0.43 percent on buying


CNA

TAIPEI–Taiwan share prices closed up 0.43 percent yesterday on follow-through buying after the index stood above the 8,300-point mark for the first time in more than nine months a day earlier, dealers said.

The weighted index rose 36.25 points to 8,343.23, after moving between 8,319.01 and 8,353.86, on turnover of NT$119.49 billion.

The market opened up 0.36 percent as investors took their cues from a six-month high recorded on Wall Street overnight, and the buying continued, largely focusing on old economy stocks amid optimism toward their earning outlooks, the dealers said.

A total of 2,176 stocks closed up and 1,728 were down with 399 remaining unchanged.

The paper and pulp sector posted the highest gains, up 1.94 percent. Plastics and chemical stocks added 1.77 percent, textile shares rose 1.3 percent, cement shares gained 0.72 percent and foodstuffs closed up 0.48 percent.

The financial sector rose 0.3 percent, the construction sector gained 0.22 percent and the machinery and electronics sector closed up 0.15 percent.

“With foreign funds continuing to flow into the local market, ample liquidity has served as a driving force to the gains,” Concord Securities analyst Allen Lin said.

Lin said investors, leaving the bellwether electronics sector behind for now, resumed intensive buying in traditional industrial firms during the trading session.

Formosa Plastics rose 3.57 percent to NT$90.00 after Merrill Lynch raised its target price on the stock to NT$100 from NT$84.00 on rising product prices.

Among the other old economy stocks, Taiwan Pulp and Paper gained 5.53 percent to close at NT$20.05, while textile firm Far Eastern New Century added 2.85 percent to end the day at NT$46.90.