Taiwan share prices closed up 1.07 percent Monday on active bargain hunting as investors shrugged off a Wall Street fall at the end of last week, dealers said. Gains in other major regional markets, including Japan and South Korea, also prompted investors in Taiwan to take advantage of recent heavy losses, leaving behind worries about tensions on the Korean Peninsula, they said. The weighted index closed up 78.66 points at the day's high of 7,373.98, off an earlier low of 7,292.54, with turnover at NT$67.93 billion (US$2.12 billion). The cement sector posted the biggest gains, up 1.33 percent, followed by the paper sector's 1.18 percent, the construction sector's 1.17 percent, the plastics and chemicals sector's 1.11 percent and the financial sector's 1.05 percent. The food sector closed up 1.01 percent, the machinery and electronics sector rose 0.97 percent and the textile sector was 0.2 percent higher. A total of 1,489 stocks closed up and 1,168 down, with 363 unchanged. 'After last week's heavy losses, investors tended to pick up stocks with attractive valuations, in particular small and medium shares,' President Securities analyst Vickie Hsieh said. Hsieh said old-economy stocks remained the favorites of bargain hunters. She said investors rushed to buy cement and construction stocks after the government announced a three-stage plan to expand Taipei's Songshan Airport to accommodate more passenger and cargo flights. 'The airport expansion plan could boost demand in the cement and construction sectors, as well as dress up their bottom lines, ' Hsieh said. Universal Cement gained 1.80 percent to NT$14.15 and Taiwan Cement added 1.30 percent to NT$27.35. Dacin Construction gained 6.76 percent to NT$18.15 and Hung Poo Real Estate rose 2.69 percent to NT$41.95. China Airlines closed up 4.23 percent at NT$14.80 on hopes that growing demand for cross-strait air links will boost its earnings, dealers said. 