Taiwan stocks ended up 0.48 percent at a 15-month closing high on Thursday, helped by shares like Cathay Financial on a report that Taiwan and China were set to sign a financial supervision agreement in October. The main TAIEX share index finished up 36.12 points to 7,545.29, its highest closing level since June 27, 2008.
Taiwan and China will sign a long-waited agreement allowing tighter ties between their financial institutions, but Taiwan financial regulators declined to comment on the timetable for the financial memorandum of understanding (MOU). "Banking shares were the main booster for Taiwan stocks this morning, but investors took profits after the index came very close to hit a technical ceiling at 7,600," said Tu Jin-lung, the chairman of Grand Cathay Investment Services.
The main index had risen as much as 1.2 percent, or 90.45 points, to 7,599.62 in early trade, which is the highest intraday level this year. Cathay Financial, Taiwan's top listed financial holding firm, was the biggest positive influence on the index as it rose 2.81 percent.
Shin Kong Financial, parent of the island's No 3 insurer, topped the most actively traded list by volume and surged more than 5 percent. The banking and insurance sub-index was up 2.32 percent, hitting its highest close in over a year. Technology shares inched down 0.08 percent as they took a breather after strong gains earlier this week.
Turnover was moderate at T$135 billion ($4.2 billion), slightly more active than Wednesday's T$126 billion. Tu said Taiwan stocks could come under pressure in October as they had risen about 10 percent in September alone and 64 percent in 2009, thanks partly to warmer trade ties with China. Foreign investors bought a net T$142.2 billion worth of Taiwan shares in September, marking their fifth-biggest net monthly purchase ever.
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