Taiwan shares close up 2.44 percent

TAIPEI, Dec 24, 2007 (AFP) - Taiwan share prices closed up 2.44 percent Monday encouraged by Wall Street's rally on Friday, dealers said.

The weighted index closed up 194.04 points at 8,135.48 on turnover of 81.94 billion Taiwan dollars (2.52 billion US).

Risers led decliners 1,557 to 432, with 443 stocks unchanged.

A total of 58 stocks closed limit-up, while 44 were limit-down.

The food sector was up 5.44 percent, cement added 3.91 percent, electronics advanced 2.91 percent and financials rose 2.10 percent.

The Taiwan dollar ended the morning session at 32.514 against the US dollar, compared with the previous close of 32.485.

Investors were also cheered by news that the Labor Pension Fund's supervisory committee has assigned 12 institutions to manage 30 billion dollars of agency funds destined for investment in local stocks, dealers said.

Samson Chueh, an assistant vice president at Yuanta Core Pacific Capital Management, said international market strength convinced investors to continue hunting for bargains here.

"Taipei stocks were first boosted by the New York rally then by firmer regional markets in Asia Pacific."

Expectations of support from government-related funds and eased margin call pressure also allowed the domestic market to recover further.

However, Chueh said political uncertainty could lead to volatility before this Friday's expected High Court ruling in the corruption trial of Ma Ying-jeou, the candidate of the main opposition Kuomintang in the March presidential election.

Taiwan Semiconductor Manufacturing Co added 0.20 to 59.20 dollars and United Microelectronics Corp gained 0.35 to 19.90.

MediaTek closed up 24.00 to 428.00 and AU Optronics rose 1.40 to 58.50.

Shin Kong Financial Holding added 0.85 to 23.05.

Realtek Semiconductor rose 6.50 to 99.50, ITE Technology added 5.50 to 84.50 and Anpec Electronics rose 3.60 to 56.20. All three were limit-up.

Formosa Plastics rose 1.10 to 89.00, Uni-President Enterprises was limit-up 2.50 at 38.55 and Asia Cement added 2.15 to 44.00.

Shin Kong Financial Holding added 0.85 to 23.05.