Taipei shares close higher on Wall St/U.S. rate cut

TAIPEI (AFX-ASIA) - Share prices closed firmer but off early highs after the surprise 50 points rate cut by the Federal Reserve overnight gave investor confidence a boost and pushed the DJIA and NASDAQ up sharply, dealers said.	    They said first quarter U.S. results also proved reassuring overall, with most matching forecasts, and this combined with the rate cut and foreign investor interest underpinned the gains.	    At the same time, the market slipped back in late trade on early profit-taking, which may reflect some concerns that the Fed action was driven by anxiety over the state of the U.S. economy.	    They said some investors will want to see these gains sustained here and overseas before being completely reassured that the worst is now over.	    The weighted index closed up 99.89 points or 1.81 pct at 5,608,50, off a high of 5,683.63. 	    Volume was 3.04 bln shares worth 128.05 bln twd. 	    Advancers led decliners 292 to 202, with 101 stocks unchanged.        Some 30 stocks closed limit-up and five limit-down.	    The electronics, financials, food, textiles, and petrochemicals sectors were up 2.56 pct, 1.54 pct, 1.33 pct, 0.12 pct and 0.01 pct.	    The paper, construction, and cement sectors were down 1.01 pct, 0.60 pct, and 0.28 pct. 	    The Taiwan dollar was at 32.866 against the U.S. dollar, up from yesterday's close of 32.920. 	    Fubon Securities Investment Service Corp manager Norman Lee credited the local rally to the advance in New York overnight following the Fed rate cut, especially on NASDAQ.	    "TSMC and UMC took (their lead) from their U.S. counterparts," Lee said, noting at the same time that there some investors may have been pushing the stocks up with a view to selling off later.	    TSMC closed up 5.50 twd at 90.50 and UMC was 3.50 higher to 54.00. Both were limit-up.	    Lee said the profit-taking that surfaced in late trade may suggest possible more selling soon, adding: "Some electronics, including TSMC and UMC, have moved close to technical resistance levels following recent gains."	    Lee said he does not expect the rally to continue that much further in the near future, noting: "The job cuts in the U.S. suggest that the U.S. economy has to face a further downturn and there is no major introduction of new products (in the pipeline) to stimulate strong demand."	    Corporate first quarter results and second quarter prospects remain the key to short-term direction, he said.	    Financials attracted interest on expectations of an easing of monetary policy after the Fed move, dealers said. 	    Chung Hsing Bills rose 0.30 twd to 10.05, International Bills added 0.15 to 8.45, and China Bills gained 0.15 to 7.70.	    IBM's in-line first quarter results and relatively positive comment buoyed interest in its local suppliers, with Acer Inc up 0.70 twd at 23.90 and Quanta up 1.00 at 113.00.	    Yageo lost 1.60 twd to on concerns over its second quarter prospects after reporting first quarter results.	    Macronix rose 1.00 twd to 52.00 and International Bank of Taipei added 0.20 to 12.80 after AGM approvals of 2000 dividends.	    Taipei Bank added 0.50 to 20.80 and Far Eastern International Bank was limit-up 0.40 at 6.20 after a report that they are likely to announce a merger soon.	    China Airlines added 0.20 twd to 18.50 after reporting 2000 and first quarter 2001 results.	    Cathay Life added 0.50 twd to 50.50 while Shingkong Life was unchanged at 25.60.	    Tatung added 0.10 to 13.15 after proposing its 2000 dividend plan.	    EVA Airways fell 0.05 twd to 11.70. 

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