Taiwan stocks ended at a 20-month high on Wednesday in a broad-based rally, as foreign investors snapped up financial issues like Cathay amid general optimism over the economy in 2004, analysts said.
The TAIEX share index opened lower, but soon reversed course, ending up 1.04 percent at 6,274.97, the highest close since late April 2002.
Turnover was active at T$112.6 billion, up from Tuesday's T$89.8 billion, underscoring the optimism.
Cathay Financial Holdings, Taiwan's largest financial group, rose 1.82 percent to T$56.0 after saying in an interview with Reuters it expects 2004 net profit to rise more than 10 percent from last year to over T$23 billion (US $682 million).
Rival Chang Hwa Bank, the island's sixth largest bank by assets, jumped 3.45 percent to T$18.0.
Analysts predict the index may test 6,400-6,500 before the week-long holidays begin on January 19 for the stock market, but they noted rising profit-taking pressure after the recent rally.
Flat computer screen maker Quanta Display surged 4.79 percent to T$17.50 on recent product price hikes.
The over-the-counter TAISDAQ rose 1.49 percent to 127.79, while January TAIEX futures added 1.14 percent to 6,325, maintaining a firm premium over the spot market.
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