Taiwan shares extend momentum after U.S. gains

Taipei, Dec. 24 (CNA) Shares in Taiwan continued momentum from a session earlier to close higher with buying sparked by a rally in the United States overnight, dealers said.

After rising 0.57 percent Tuesday, the Taiex, the Taiwan Stock Exchange's benchmark index, ended up 61.51 points, or 0.22 percent, at 28,371.98 Wednesday. Turnover totaled NT$429.04 billion (US$13.66 billion).

"Washington reported better-than-expected GDP growth of 4.3 percent for the third quarter, prompting investors to buy amid improved market sentiment," Hua Nan Securities analyst Kevin Su said, referring to an historic closing high on the S&P 500.

"Local investors simply followed suit and picked up select large cap stocks, in particular TSMC (Taiwan Semiconductor Manufacturing Co.) to support the Taiex, although the light turnover capped the upturn," Su said.

Contract chipmaker TSMC, the most heavily weighted local stock, rose 0.34 percent to close at NT$1,495.00. The stock's gains represented about 40 points of the Taiex's rise.

Su said shares in power management solution provider Delta Electronics Inc., another large cap stock, rose 1.27 percent to end at NT$955.00, lending further support to the index.

"With many foreign institutional investors away for the holidays, smaller stocks turned active with memory chip supplier and printed circuit board (PCB) related stocks in focus."

Due to a global shortage of memory chips, Nanya Technology Corp. soared 7.08 percent to close at NT$189.00, and Winbond Electronics Corp. gained 5.34 percent to end at NT$76.90.

Elite Material Co., a supplier of materials for PCB production, rose 4.64 percent to close at NT$1,690.00, and PCB maker Gold Circuit Electronics Ltd. added 2.61 percent to end at NT$668.00.

While the electronics sector accounted for about 70 percent of total turnover, nontech stocks largely appeared lackluster, Su said.

Formosa Plastics Corp. lost 0.87 percent to close at NT$39.75, and Nan Ya Plastics Corp. shed 1.19 percent to end at NT$58.10.

Eclat Textile Co. fell 0.39 percent to close at NT$386.00, and rival Far Eastern New Century Corp. ended down 1.42 percent to end at NT$27.80.

With the financial index down 0.52 percent, Cathay Financial Holding Co. lost 1.04 percent to close at NT$75.90, and Fubon Financial Holding Co. ended down 0.10 percent at NT$98.00.

"If the U.S. markets continue to post gains, the Taiex could challenge 28,568 points, the intraday high on Dec. 11, soon," Su said.

According to the TWSE, foreign institutional investors sold a net NT$3.80 billion worth of shares on the main board Wednesday.