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15:02 26Jun09 RTRS-Taiwan stocks reach 2-wk closing high, property shares jump* Index at two-week high, best among 30 global indexes * Property shares jump on steady interest rates * Tech shares dip despite Wall Street gains (Updates to close, adds details, quotes) TAIPEI, June 26 (Reuters) -Taiwan stocks closed 0.09 percent higher on Friday at a two-week closing high after Taiwan's central bank kept rates steady, keeping the cost of lending low and boosting property shares such as Farglory <5522.tw>. The main TAIEX share index <.TWII> ended 5.95 points higher at 6,463.56, its highest close since June 11. The index gained 3.73 percent this week, making it the best performer among the 30 global indexes tracked by Reuters. Turnover was light at T$107 billion ($3.25 billion), highlighting investor worries about the sustainability of the current rally and continued concerns over corporate profitability amid the economic slowdown. "Property shares will continue to thrive as commercial ties between Taiwan and China warm up, and as people take advantage of low rates to make real estate investments," said Tom Tang, a fund manager at Masterlink Investment Advisory. Taiwan's central bank left the benchmark discount rate unchanged at a record low of 1.25 percent for the second straight time on Thursday, and said it would only consider lifting rates when the economy returns to pre-crisis levels. [ID:nTP263201] Real estate developer Farglory led gains in the sector, closing 5.46 percent higher. The broader construction sub-index <.TCOI> rose 1.02 percent as investors bet that low interest rates would lead to a spike in home sales. However, technology shares slipped, reversing earlier gains as investors fretted that consumer demand in the West remained weak, possibly hurting the bottom lines of Taiwan's many export-reliant tech companies. Hon Hai <2317.tw>, Taiwan's largest electronics maker, fell 1.45 percent even after a local newspaper reported that it would be the contract manufacturer for one of Hewlett-Packard's laptop PCs. Powerchip Semiconductor <5346.two>, Taiwan's biggest DRAM chipmaker, fell 3.55 percent after it said on Friday that its capital spending this year would likely fall below T$5 billion, which is lower than previously forecast. [ID:nTPU001459] "The outlook may be gloomy for the third quarter due to a slowdown in the electronics sector because of a decrease in demand across North America and Europe" said Tang. Analysts warned
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