Local bourse rallies above 7,300 on back of Wall Street’s overnight gains


CNA

TAIPEI — The Taiwan stock exchange’s benchmark index rallied above 7,300 yesterday after investors followed the lead of gains posted on Wall Street overnight, dealers said.

Select large cap stocks attracted bargain hunting to boost the broader market, with investors buoyed by expectations that central banks in major economies will come up with measures to boost the global economy, they said.

Turnover remained thin, however, amid lingering concerns over the debt problems in the eurozone, in particular after the 10-year bond yield in Spain hovered above 7 percent, they added.

The weighted index closed up 61.5 points, or 0.84 percent, at the day’s high of 7,334.63, off an early low of 7,281.41, on turnover of NT$67.13 billion.

The market opened up 0.44 percent in a knee-jerk reaction to gains on Wall Street, driven by expectations that the U.S. Federal Reserve will announce further stimulus measures after concluding a two-day policymaking meeting later in the day, dealers said.

With buying in market heavyweights, such as Taiwan Semiconductor Manufacturing Co., flat panel maker Chimei Innolux Corp. and select old economy stocks accelerating late in the session, the index managed to push well above the 7,300-point level before the market’s close, they said.

“Encouraged by a rising Wall Street, more and more investors expect the world’s central banks, in particular the U.S. Fed, to do something to take on the slowing global economy,” said E. Sun Securities Investment Consulting analyst Liu Yi-ho.