January 8, 2008

Taiwan Stock Index Rises 1 Percent

TAIPEI, Taiwan -

Taiwan shares rose on bargain hunting Tuesday, a day after the benchmark index dropped 4.1 percent to its lowest level since Dec. 20.
The Weighted Price Index of the Taiwan Stock Exchange gained back 79.54 points, or 1.0 percent, to 7,962.91.

KGI Securities' Scott Hsu said investors were looking to strengthen positions in issues with relatively little exposure to the American market because of fears of an economic downturn in the U.S.

"Investors bought into China-demand related sectors and avoided electronics on concerns over weaker demand for electronics amid slower U.S. economic activity," he said.

Cement and shipping led the pack in Tuesday's trade, with subindexes for the sectors gaining 5.4 percent and 4.7 percent respectively.

Taiwan Cement rose 6.9 percent to NT$49.30 on a Central News Agency report that Morgan Stanley expects the company to become the No.3 player in China by 2010.

Evergreen Marine was also a big gainer, climbing 6.8 percent to NT$30.50.

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