Foreign investors purchased NT$88.5 billion worth of shares but sold only NT$45.6 billion, leading to a net over-buying position of NT$42.9 billion, the highest single-day figure of its kind.

The price index has risen 11.9 percent this year, compared with a 9.8 percent gain of Morgan Stanley Capital International Asia-Pacific Index.

The market opened high, with the share price index trending upward throughout the session. The price indexes for all the eight major categories of shares rallied yesterday, with plastics sector posting the highest gain of 4.59 percent, mainly fueled by the good performance of shares of Formosa Plastics Group.

Tech heavyweights and the financial sector led the way in yesterday’s trading.

TSMC rose 4 percent to NT$68.30. Cathay Financial gained 6.6 percent to NT$79.00. Shin Kong Financial rose the 7-percent limit to end at NT$37.90. Market experts said that a correction was likely, because the market was overheated.

On another front, the New Taiwan dollar yesterday posted the biggest gain in almost six months, as overseas investors increased purchases of the island’s equities. The local dollar rebounded from an almost three-week low reached on June 15 as stock exchange data showed overseas investors posted a net buying position of NT$42.9 billion.

Taiwan’s currency snapped a week of losses, rising 0.5 percent or NT$0.161 to close at NT$32.981 at the 4 p.m. close of onshore trading, the biggest appreciation since Jan. 2, according to Taipei Forex Inc.

Total turnover amounted to a high of NT$1.717 billion, Market experts forecast the local currency to sustain an upward movement trend and challenge the NT$32.9: US$1 level in the short time.

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