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Local market finishes over 9,500-point level after Wall Street boost

TAIPEI, Taiwan -- Shares in Taiwan closed above the 9,500-point mark Thursday as investors took hints from a fresh high recorded on Wall Street overnight and pushed the local index higher, dealers said.

The weighted index on the Taiwan Stock Exchange ended up 41.27 points, or 0.43 percent, at 9,526.23, after fluctuating between 9,449.78 points and 9,538.65, on a turnover of NT$120.29 billion (US$4.02 billion).

High-tech Blue Chips Reign

Buying focused on the bellwether electronics sector, with high-tech blue chips such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC,台積電) and integrated circuit designer MediaTek Inc. (MTK,聯發科) leading the entire sector, dealers said.

Apple concept stocks -- Taiwanese suppliers to the U.S. consumer electronics giant including smartphone camera lens maker Largan Precision Co. (大立光電) and the world's largest contract electronics manufacturer Hon Hai Precision Industry Co. (鴻海精密) -- also attracted strong interest, lending support to the index, they added.

The market opened down 0.17 percent and fell to the day's low on a technical correction, but the market regained its footing in the mid-morning session with electronics heavyweights moving ahead amid continued optimism toward their profitability, the dealers said.

The gains showed that investors felt relieved by a speech by U.S. Federal Reserve Chair Janet Yellen in which she said the Fed does not need to shift its focus from supporting the economy to managing financial crises, indicating that the central bank will keep liquidity high, the dealers said.

"Wall Street's uptrend encouraged investors here to buy after Yellen spoke," Concord Securities analyst Kerry Huang said. "Thanks to a stronger high-tech sector, the local market closed higher today, reversing the earlier losses."

MTK Stages Ex-divided Trading Show

On the eve of ex-dividend date of July 4, MTK once gained 5 percent during intra-day session, touching over 4-year high of NT$545 meanwhile inaugurating this year's regular ex-divending trading peak in Taiwan.

The other noticeable ex-dividend trading frenzy was initiated by TSMC, the ex-dividend date of which is slated for July 14.

TSMC, the most heavily weighted stock in the local market, rose 1.51 percent to close at NT$134.50, while MTK gained 3.28 percent to end at NT$535.00 on the back of solid global demand for mobile devices.

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