Local bourse ends above 7,800 points


CNA

TAIPEI — Shares in Taiwan closed above the7,800-point mark yesterday as the high-tech sector staged a rebound on the further depreciation of the New Taiwan dollar, dealers said.

Many investors have embraced high hopes that a falling New Taiwan dollar will make locally made high-tech gadgets more competitive in the global market and boost sales of the electronics sector, they said.

The weighted index closed up 87.33 points, or 1.13 percent, at the day’s high of 7,802.00, off an early low of 7,739.60, on turnover of NT$74.73 billion.

The market opened up 0.38 percent on follow-through buying, and momentum accelerated with large-cap high-tech stocks, in particular Taiwan Semiconductor Manufacturing Co. (TSMC), attracting more buying on optimism that a weakening Taiwan dollar will improve their sales, dealers said.

Local suppliers to Apple Inc. also posted strong gains to push the index even higher after the U.S. consumer electronics giant staged a more than 2-percent rally on Wall Street overnight, they said.

“Taiwan is in a currency depreciation competition with its rivals, such as Japan and South Korea. Taiwan’s central bank made further efforts to intervene to drag down the Taiwan dollar against the U.S. dollar,” Mirae Asset Management analyst Arch Shih said.

Following a 1.06-percent dive seen Monday to a more than four-month low of NT$29.560, the Taiwan dollar closed the Tuesday morning session lower at NT$29.629 against the greenback.