Taiwan stocks regain momentum, move back above 10,700 points

Taipei-Lifted by a surge in high-tech stocks after three major indexes in the United States gained ground overnight, Taiwan shares closed higher Friday to end above the 10,700-point mark.

The main weighted index on Taiwan's stock exchange, the Taiex, closed up 76.60 points, or 0.72 percent, at 10,701.64 on turnover of NT$126.546 billion (US$4.2 billion).

Gainers outnumbered losers 432 to 326, with 142 stocks remaining unchanged.

Electronics shares outperformed the broader market, gaining 1.06 percent with the help of gains by Apple-concept stocks such as Taiwan Semiconductor Manufacturing Company (TSMC, ???), and Hon Hai Precision Industry Co. (??).

TSMC, the most heavily weighted stock on the exchange, closed 1.47 percent higher at NT$241.50, while Hon Hai rose 0.96 percent to finish at NT$105.50.

A big winner on the day was electronic component manufacturer Yageo Corp., (??), which rose 8.52 percent to end at NT$293 amid strong demand for its multi-layer ceramic capacitor (MLCC) chips.

The company recently announced it will raise the price of its MLCC chips by 15-30 percent starting Dec. 1 -- the company's fourth price hike this year -- indicating the strong demand for the chips and the company's sound fundamentals, analysts said.

Other providers of passive components, such as Walsin Technology Corp., (???), Holy Stone Enterprise Ltd. Co., (???), and Chilisin Electronics Corp. (???), also ended higher.

Because the fourth quarter is considered the peak season for the high-tech sector, Taiwan's stock market is likely to continue its upward trend next week as long as global markets remain bullish, analysts said.

They expected there to be strong technical resistance around the 10,744-point mark, however, and said daily turnover will have to exceed NT$130 billion for the index to make a further breakthrough.

Source: Focus Taiwan News Channel