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Acer and TSMC lead shares higher

Taiwan stocks rose, led by companies that supply Motorola Inc such as Acer Communications & Multimedia Inc (明電), after the second-largest maker of mobile phones reported narrower-than-expected second-quarter loss.

"There should be a short-term bounce," said Ingrid Cheng, who helps manage NT$14 billion (US$400 million) in Taiwan stocks at Grand Pacific Investment Trust Co (中信投信). Motorola beat expectations, but "We must look at whether shipments and sales will actually rise."

The TAIEX Index rose 85.25, or 1.9 percent, to 4,633.54, snapping seven days of decline. Within the index, 379 stocks rose, 58 fell, and 70 were unchanged.

Trading at NT$50.3 billion (US$1.4 billion) was the highest since June 13 and 35 percent lower than the six-month daily average of NT$77.2 billion.

Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) and other exporters also gained after the NT dollar depreciated to a 14-year low against the US dollar, raising the value of exporters' overseas sales.

Companies that supply Motorola Inc rose after the second-largest maker of mobile phones reported narrower-than-expected second-quarter loss. Acer Communications & Multimedia, which makes cell phones for Motorola, rose NT$2.1, or 6.8 percent, to NT$32.80. Advanced Semiconductor Engineering Inc (日月光), which packages Motorola's semiconductor chips, rose NT$0.80, or 3.9 percent, to NT$21.20.

Chipmakers rose after the Philadelphia Semiconductor Index, a price-weighted index of 16 companies involved in the design, distribution and manufacturing of semiconductors, rose for the first time in five sessions, to 2.9 percent, signaling the shares' decline may be overdone.

TSMC, the biggest made-to-order semiconductor maker, rose NT$2, or 3.3 percent, to NT$63.50. United Microelectronics Corp (UMC, 聯電) rose NT$0.60, or 1.4 percent, to NT$42.90. Winbond Electronics Corp (華邦電子) rose NT$1.3, or 5 percent, to NT$27.20. Macronix International (旺宏電子) rose NT$1.7, or 5.7 percent, to NT$31.70.

Via Technologies Inc (威盛電子) and Acer Inc (宏電) rose on optimism Beijing will win selection as host city for the 2008 summer Olympic Games. Via contributed to Beijing's bid by supplying computers and other promotional items, Chinese-language media reported. Via rose NT$14, or 6.8 percent, to NT$221.

Giant Manufacturing Co (巨大機械) rose NT$0.60, or 1.6 percent, to NT$39.20. Taiwan's biggest bicycle maker said it intends to sell shares in China after its board of directors approved the plan. The company is now "in the midst of getting the paperwork done," said Liu Yong-Chang (劉湧昌), Giant's vice president for sales and marketing.

Microtek International Inc (全友電腦) rose NT$0.30, or 4.2 percent, to NT$7.40. The computer scanner maker is seeking to raise US$54 million by selling shares in Shanghai.
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