Taipei shares close sharply higher on foreign interest, steadier currency

TAIPEI (AFX-ASIA) - Share prices closed sharply higher on strong foreign investor interest as the Taiwan dollar held steady on apparent central bank intervention, dealers said.

They said support from government funds, evidenced by solid gains in financials, encouraged retail investors to look for bargains while the electronics sector staged a technical rebound.The weighted index closed up 218.49 points or 4.38 pct at the day's high of 5,209.97. 

Volume was 2.15 bln shares worth 69.97 bln twd. 

Advancers led decliners 518 to 39, with 37 stocks unchanged.

Some 16 stocks were limit-up while 11 limit-down. 

The cement, electronics, petrochemicals, paper, textiles, financials,food and construction sectors were up 5.49 pct, 4.73 pct, 4.70 pct, 4.62 pct, 4.59 pct, 3.81 pct, 3.54 pct and 3.00 pct.

The Taiwan dollar was at 33.450 against the U.S. dollar, up from yesterday's close of 33.456.

Fubon Securities Investment Service Corp manager Norman Lee said the finance ministry's announcement of plans to attract more foreign investment into the stockmarket helped sentiment after a slightly uncertain start.

Retail investors followed the foreign investor lead, with investment trust companies also active, and this combined with apparent government support for the market pushed prices ahead, Lee said.

He said the gains suggests the market has now defined the bottom at around 5,000 points.

Prudential Securities Investment Corp assistant vice president Reming Yu said there was a technical rebound in the electronics sector despite a weak April North American semiconductor manufacturing equipment book-to-bill ratio.

"That was viewed as a neutral lead as investors expect soft figures in the industry (at the moment)," Yu said.

Chang Hwa Bank rose 1.00 twd to 16.50 and China Development Bank added 1.80 to 28.30. Both were limit-up. 

UMC added 1.50 to 54.00 and Formosa Chemicals gained 1.70 to 28.80 on foreign investor interest, dealers said. 

TSMC rose 4.50 twd to 94.50 after chairman Morris Chang said he remains of the view that the company and the industry will see a sequential recovery over the second half.

Macronix was limit-up 2.20 twd at 34.10 after it said it expects May sales to top the April outcome, while Acer Inc was limit-up 1.20 twd at 19.40 after announcing plans for a news conference June 1 on an alliance with Palm.

Mosel Vitelic was limit-up 1.30 twd at 20.40.

China Motor rose 0.90 to 29.50 after AGM approval of its 2000 dividend.

Walsin Lihwa was limit-up 0.80 twd at 12.35.

China Steel was unchanged at 20.40 twd following reports that Yieh Loong vice chairman is expected to be appointed chairman of the company.

Taiwan Cellular rose 0.80 twd to 39.50 after unit Taiwan Fixed Network acquired 341.80 mln shares in the company over the past two days.

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