Taiwan stocks rose 0.43 percent on Friday to their highest close in seven years, as investors chased small-cap growth issues such as Epistar Corp ahead of quarterly earnings from big technology firms. The benchmark TAIEX share index ended up 39.53 points at 9,188.31, on a five-day winning streak that has pushed the market 17 percent higher since the beginning of the year.
Turnover remained active at T$210.72 billion ($6.42 billion). "We really should be cautious before quarterly results," said Grand Cathay Securities analyst Kevin Yeh. "But it seems people have confidence in smaller companies, especially those with solid growth."
Epistar, which makes light-emitting diode (LED) chips for cellphones and cars, surged 6.83 percent to its daily limit. Rival Everlight jumped 1.28 percent, lifting the newly launched semiconductor sub-index up 0.37 percent.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's top contract chip maker, dropped 1.26 percent even after the Taiwan government said it had no immediate plans to sell its 6 percent stake in the company. In Taiwan, a slew of major tech companies, including TSMC, are set to report their second-quarter earnings in late July. They will also give guidance for the third quarter.
Grand Cathay's Yeh said he expects the TAIEX to trade between 9,100 and 9,450 points next week. Concord Securities finished limit-up after a local newspaper report that it has formed a strategic alliance with Belgium's KBC to invest in a local investment trust company. Capital Securities also went limit-up on hopes that securities houses would reap profits from the recent rally in the local stock market.
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