Taiwan share prices closed up 0.54 percent on Friday after a positive Wall Street performance overnight but gains were capped amid inflation concerns, dealers said. The weighted index closed up 43.28 points at 8,105.59, off a low of 8,042.89 and off a high off 8,161.64, on turnover of 101.34 billion Taiwan dollars (3.32 billion US).
Gainers outnumbered decliners 1,344 to 925 with 409 unchanged. The financial sector was up 1.70 percent and electronics up 0.27 percent. Transport was down 2.85 percent and tourism 0.10 percent lower.
"Today's gains were just a technical rebound. Inflation concerns on high crude international prices remained," President Securities analyst Johnny Lee said. "Market confidence remains fragile. Once Wall Street tumbles again, the local bourse will suffer accordingly," Lee said, adding it remains unclear how bad the US economy is. As the weighted index rose Friday profit taking pressure surfaced to limit the upside, keeping the market in a narrow range, Lee added.
"Taiwan shares are not likely to rise strongly in the near term, as investors are still cautious and prefer to make quick bucks," Daiwa Securities analyst David Li told Dow Jones Newswires.
The tourism and transport sectors were hurt by profit taking, dealers said. Their earlier upside was encouraged after China and Taiwan signed a historical agreement Friday morning to launch weekend charter flights and allow more Leofoo Development was 0.35 lower at 26.10 dollars and China Airlines was down 0.20 at 13.35, while EVA Air was up 0.05 at 14.75.
Dealers said investors bought into notebook computer makers as defensive stocks on their stable outlook. Acer added 1.70 to 63.10 and Asustek rose 2.60 to 82.60. Taiwan Semiconductor Manufacturing Co closed unchanged at 64.80 and United Microelectronics Corp remained steady at 17.00. Cathay Financial was 1.80 higher at 74.30.