Share prices closed higher on bargain-hunting interest, notably in bank stocks, which offset bouts of profit-taking, dealers said. The 225-issue Nikkei Stock Average closed up 29.33 points or 0.2 pct at 12,502.26, off a high of 12,515.66. Yesterday, the index surged to a new four-year closing high of 12,607.30. The broader-based TOPIX index of all First Section issues added 3.61 points or 0.3 pct to 1,275.61. At one stage, it rose to 1,276.84. Gainers led losers 801 to 707, with 143 issues unchanged. Volume reached 1.69 bln shares, down sharply from 2.24 bln yesterday. "Local institutional investors stepped into the market to buy on dips, including bank shares, which helped lend support to equity prices here," said Akitsugu Akino, chief portfolio manager at Ichiyoshi Investment Management. SBI Securities strategist Hideyuki Suzuki concurred, adding that market sentiment remained bullish as the buying spree more than counteracted a slew of profit-taking. "Stocks had earlier taken a breather today, as foreign investors turned net sellers today, but the Nikkei index recouped earlier losses to climb back into positive territory -- which is a typical sign of market bullishness," he said. Brokers said foreign investors stopped their stock-buying spree today, when they placed net sell orders ahead of the market opening for the first time in 22 trading days.