Taipei, May 31 (CNA) Taiwan's shares opened higher and remained above their opening level on the Taiwan Stock Exchange Thursday, following a rally on Wall Street and in Europe overnight.
The weighted index, the key barometer for the local stock market, finished at 10,874.96 -- 53.79 points, or 0.5 percent higher, on heavy turnover of NT$236.45 billion (US$7.9 billion).
Boosted by a rally on Wall Street, the local bourse passed the 10,900-point mark, hitting 10,909.61 during the session before losing momentum and slipping back slightly.
Market analysts attributed the high turnover to a cut in Taiwan's weighting by global index provider MSCI Inc. in its major indexes. The cut is scheduled to take effect following the market close on Thursday.
0ld-economy shares, such as those in the foodstuff and textile sectors, rose by 1.34 percent and 1.27 percent, respectively, while electronic-engineering shares gained 0.33 percent.
During the session, 549 shares rose, 274 fell and 95 remained unchanged.
TSMC, the world's number one foundry and the market's most heavily weighted stock, climbed 1.36 percent to NT$224.
Shares in Hon Hai Precision Industry Co., the world's largest contract consumer product maker, fell 1.95 percent to end the day at the session's low of NT$85.7.
Given that the anticipated cut in Taiwan's weighting on MSCI's major indexes has not caused volatility on the local stock market, analysts forecast that the weighted index is likely to move in a narrow range in the short term, with individual stocks expected to outperform the broader market on positive leads.
Source: Focus Taiwan News Channel